I have received a lot of subsistence receipts from various clients recently. Can anyone help clarify which of the following would be allowable. All are single director ltd companies
1 Tea bought for builders refurbing a shop (not employees so entertainment?)
2 Client has a shop but also does markets and trade shows, can meals bought whilst at market and trade shows be claimed? My thoughts are that this might be the normal place of work for that day particularly at a regular market. Or are they away from the shop (normal place of work) so can claim?
3 Client works away from home a lot. Stays in a caravan in a holiday park as it's cheaper than a hotel and buys food from a supermarket to cook himself. Can he claim the food as he's away from home or is there no extra expense incurred than he would have paid at home so it's not claimable? If claimable, what about a bottle of wine with the meal? Toiletries?
Interesting. I agree with Johnnie on No. 2 but not the other two. Johnny may well be right so they are opinions based on my understanding of subsistence.
Would it be possible for No 1 to come under refreshments Johnny or would the builders be required to supply their own drinks?
I have a client who does exactly the same on No. 3 but whilst I would allow the accommodation and a bought meal, I wouldn't allow normal groceries. This is based on HMRC you have to eat to live and buying normal groceries is the same you would do at home. HMRC allows a bought meal if not part of a usual pattern of work.
-- Edited by Leger on Sunday 19th of March 2017 03:24:24 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Thanks to both of you. I was expecting differing opinions and was hoping to go with the majority.
I would have said the builders should either bring their or they should pay and bill the client.
Number 3 is a tricky one. He could go out every night and claim it but is trying to save some money but then none of it becomes allowable.
Trade shows I think are quite clear. But the weekly market I'm not so sure on. It's only a few coffees and a sandwich, nothing excessive so I think I will allow it at the risk of it being disallowed later.
Sorry I completely overlooked the groceries - agree with John. I'd say if the builders were employees the refreshments would be allowable - interesting. (Of course opinion)
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Johnny - Owner of an overly-active keyboard.
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