My clients occasionally have to travel to London and stay overnight for business meetings. I sometimes get food/drink bills that are extravagant to say the least (eg food for two £176!). I would like to put some through as subsistence rather than all as entertaining - what would you suggest?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Don't forget also that an overnight allowance might be claimable. It used to be £5 per night in the UK and £10 a night out of the UK, but I am not sure if that is still set at same level :)
Thank you Michelle, I was worried that even half of £176 food bill might be too much. Good idea about the overnight allowance too - I will research the amounts
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I suppose there is an argument for the client - like, if he lives well in his lifestyle, why cant he keep that up when away on business.. but I prefer to air on the side of caution! As long as you can justify your thinking, I don't think it would come back to bite you on the ass!
How does it look when you pull out the food proportion and a couple of drinks?? Any better??
I had this with a previous employer I used to do the bookkeeping for. Extravagant meals, entertaining friends not clients, £3000 helicopter rides to horse racing, a £3000 massage chair for his house, a £13000 'guard' dog that was then sent back to the breeder but the invoice was still put through by the bookkeeper before me!
When you pay him, you create a credit note for £56 and you post this to PAYE 2210.
If you prefer, you can rename "National Insurance" to CIS and post the credit to here.
Then, when you do your PAYE at month end, you can move the CIS being included in that particular month to PAYE 2210. This allows you to plot whats owing for CIS and should balance the 2210 account, to match the amount that will be made by bank payment.
Edit - tidied this up a bit and tried to make it sound clearer!
-- Edited by FoxAccountancyServices on Saturday 8th of June 2013 02:50:23 PM
Hello Michelle Im hoping you are near your PC today and can help with this query. Ive raised it on the form then I thought of you as my Sage saviour!!!!!!!
I have an invoice from a sub-contractor who is CIS registered. His invoice is for £280 in total. Ive calculated the tax to take off at £56 so we have paid him £224. How do I enter his invoice? Am having brainache as keep thinking if I enter it at the original £280 then how will his account be cleared?
PLEASE HELPPPPPPPP
Thanks
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
