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How to Claim your Travel and Subsistence Costs against your Business

July 30, 2013

Posted by Simon Misiewicz on 25th July 2013

Do you stay away from home or your business?

Do you occasionally have to stop off and eat whilst working?

If you have answered yes to either of these questions then read on……Many business owners and property investors alike are missing out on the amount of money that they can claim against their business. Please note that this does not mean that you can claim for travelling on a daily basis to your normal place of work. You must also specify where your normal place of work is.(1)

The typical types of costs you can claim for are and must be supported by receipts:

  • Buses, trains, planes
  • Hotel accommodation
  • Meals*
  • Tolls and car parking
  • Business phones calls, internet charges (hotels or other mobile)
  • Business mileage **
  • Professional fees
  • Home costs ***

Meals *
If you have a limited company or work for a limited company then you can claim a meal allowance for the days that you are inconvenienced from your normal place of work. The limited company (employer) needs to request a dispensation before providing an allowance to their employees. (2) Again please note that the below rates are not given if it is a regular occurrence.

  • £5 Breakfast rate given if an employee leaves their house before 6am
  • £5 meal rate where an employee has been away from normal place of work for more than five hours
  • £15 meal rate whereby the employee is working after 8pm and eats whilst working

You should apply to HMRC for a dispensation. You need to complete a form P11DX, which is the form used by employers to apply for a dispensation, and submit it to HMRC. On the form you need to indicate with a tick against the appropriate statement under ‘Travel and Subsistence’ that you intend using HMRC’s benchmark scale rates to reimburse your employees’ subsistence payments. By ticking this box you would be merely notifying HMRC that you intend paying HMRC’s benchmark scale rates for day subsistence and that you have adequate management processes in place to ensure that payments are only made where all the qualifying conditions are met. (3)

Business Mileage **
We covered this subject matter in an early article. Please look at our list of articles for more details.
Home costs ***
From 2012-13 onwards, for payments of up to £4.00 per week, or £18 per month for monthly paid employees, you don’t need to provide any records of the household expenses you’re claiming relief for. For amounts above £4.00 you will need supporting evidence to show that the amount you are claiming is no more than the additional household expenses you have actually incurred.The guideline rate for 2008-09 to 2011-12 was £3.00 per week and for 2007-08 it was £2.00 per week. (4)

We have designed a nice and easy spreadsheet that takes all the above into consideration. If you would like a copy of this then please send me an email with the word “Expenses” in the subject line so that I can send it to you.

For more information please contact us on 0115 9394606 or book a free consultation with us here

References:
(1) HMRC Travel Refielf
(2) HMRC Income Tax Brief
(3) HMRC EIM05231 – Employment income: scale rate expenses
(4) HMRC Household Releif



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Telephone: 0115 939 4606
Email: simon@optimiseaccountants.co.uk