Daily expenses for Tax relief
Discussion
I am a self employed race engineer.
I have been told that I can claim up to £25 per day expenses when working away from home. A guy down the pub told me, so it must be true..!
Does this apply only when it is overnight or if accomodation or food is not supplied.
Thanks in advance.
Graham
I have been told that I can claim up to £25 per day expenses when working away from home. A guy down the pub told me, so it must be true..!
Does this apply only when it is overnight or if accomodation or food is not supplied.
Thanks in advance.
Graham
When Self Employed it is not usual for GLOBAL expenses to be claimed in this way. The basic rule is that an expense must be INCURRED wholly and exclusively for the purpose of your trade. In other words, it must have been a genuine cost that you actually had to pay in order to run your self employed business.
If you are working away from home, you should be able top claim GENUINE expenses incurred as a result of you being away from home - such as hotel bills, subsistence costs and travel costs.
Have you talked to an accountant?
>> Edited by Eric Mc on Sunday 15th January 19:38
If you are working away from home, you should be able top claim GENUINE expenses incurred as a result of you being away from home - such as hotel bills, subsistence costs and travel costs.
Have you talked to an accountant?
>> Edited by Eric Mc on Sunday 15th January 19:38
Eric, appreciate you taking the time to respond.
My brother, who does my books is a company accountant, not chatered. No fee so this is great, but he is not 100% on what can be claimed. I have taken the view that his zero fee out weighs the possible savings an accountant may give me.
I was given the impression that an alternative to supplying receipts per day would be a £25 allowance.
Pub talk I know, but I thought it was worth asking the question.
Graham
My brother, who does my books is a company accountant, not chatered. No fee so this is great, but he is not 100% on what can be claimed. I have taken the view that his zero fee out weighs the possible savings an accountant may give me.
I was given the impression that an alternative to supplying receipts per day would be a £25 allowance.
Pub talk I know, but I thought it was worth asking the question.
Graham
You would be surprised how much a good accountant can save you. In fact, acccountants as a breed are very poor at emphasising what good value they are i.e. emphasising to their clients the taxes saved compared to the fees they charged.
There is one expense where a flat rate is allowed and that is the claim for motoring costs. Normally, motoring costs are claimed based on the actual buisness proportion of the vehicle running costs e.g. - fuel bills, repair bills, insurance and road tax plus the capital allowances available on the vehicle itself. However, the Inland Revenue does allow a simpler "pence oer mile" based claim. The pence per mile basis allows the tax payer to claim motoring costs at 40p for the first 10,000 business miles and 25p thereafter.
On the subject of Capital Allowances, make sure your brother is claiming the allowances available to you.
>> Edited by Eric Mc on Monday 16th January 08:06
There is one expense where a flat rate is allowed and that is the claim for motoring costs. Normally, motoring costs are claimed based on the actual buisness proportion of the vehicle running costs e.g. - fuel bills, repair bills, insurance and road tax plus the capital allowances available on the vehicle itself. However, the Inland Revenue does allow a simpler "pence oer mile" based claim. The pence per mile basis allows the tax payer to claim motoring costs at 40p for the first 10,000 business miles and 25p thereafter.
On the subject of Capital Allowances, make sure your brother is claiming the allowances available to you.
>> Edited by Eric Mc on Monday 16th January 08:06
lanan said:I think your are referring to PIE - Personal Incidental Expenses. £5 per night UK, £10 per night overseas. This covers pprivate phone calls, laundry, newspapares etc - minor incidental expenses. If you do not reimburse meal expenses you can alternatively claim an allowance in respect of meals and other incidental subsistence costs to employees staying away overnight from their normal place of work of up to £20 per night UK and £30 overseas.
Eric, appreciate you taking the time to respond.
My brother, who does my books is a company accountant, not chatered. No fee so this is great, but he is not 100% on what can be claimed. I have taken the view that his zero fee out weighs the possible savings an accountant may give me.
I was given the impression that an alternative to supplying receipts per day would be a £25 allowance.
Pub talk I know, but I thought it was worth asking the question.
Graham
PS I am not an accountant, just another "guy down the pub". But I'm sure you'll find this on the Inland Revenue's website somewhere nevertheless.
Here you go - sections 8.2 to 8.6 of Employee travel - A tax and NICs guide for employers
>> Edited by victormeldrew on Tuesday 17th January 17:21
Be carefull - the way EMPLOYEES can claim tax relief on expenses incurred in the course of their EMPLOYMENT is very different from the rules governing what and how SELF EMPLOYED individuals claim expenses in their business accounts.
Although the Inland Revenue have dropped them, the old tax Schedules governed the tax treatment of "expenses" and, by and large, these rules still apply.
Regulations for employees (and this includes company directors) were covered by Schedule E rules
Ruglations for Self Employed individuals (more correctly termed "Sole Traders" ) were covered by the Schedule D (Cases I and II) regulations.
Allowable Flat Rate expense claims normally relate to EMPLOYEES.
>> Edited by Eric Mc on Tuesday 17th January 18:50
Although the Inland Revenue have dropped them, the old tax Schedules governed the tax treatment of "expenses" and, by and large, these rules still apply.
Regulations for employees (and this includes company directors) were covered by Schedule E rules
Ruglations for Self Employed individuals (more correctly termed "Sole Traders" ) were covered by the Schedule D (Cases I and II) regulations.
Allowable Flat Rate expense claims normally relate to EMPLOYEES.
>> Edited by Eric Mc on Tuesday 17th January 18:50
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