I work for a housing association and stay overnight at Premier Inn's. I work 39 hours a week 08:00 till 16:30 and 08:00 to 15:30 on Fridays.
I usually have my breakfast and evening meal paid for, but I have just arrived at an Inn where the cost wasn't included for the evening meal so I'm having to shell out for the meal myself and claim them back.
I'm just wondering what I'm entitled to claim (with and without receipt).
Thankyou for the reply. I have managed to get hold of a expenses policy and got the info off there.
Another question, what exactly qualifies as an 'Incidental' expense?
In the policy it states:
Payment of incidental expenses connected with business travel (for example the purchase of a newspaper when away on business) is allowable up to a maximum of £5.00 per night on production of a receipt.
I'm curious as to what is meant by this, I've not managed to find any clear cut answer as to what it is the expenses are for and can't find anymore examples other than newspapers and phonecalls home. Would buying a book within the allowance be acceptable for instance or a payment to an online merchant like eBay or Amazon?
the rule is that only expenses incured wholly, nexessarily and exclusively in the purpose of the business are allowable (with a valid receipt).
HOWEVER...
There are allowable exemptions to ITEPA 2003 (specifically s.240) so that where an employer agree's to reimburse expenditure up to £5 within the UK or £10 elsewhere in the world.
This is for business trips only. If you are staying away for an extended period it is not applicable. You must also actually stay away from home at overnight and returning home should not be an option for you.
Buying items to the value of the allowance is not expenditure necesssary whilst staying away. i.e. buying something from Amazon is nothing to do with the business trip and would not be reimbursed unless you could show your employer that the purchase was wholly, necessarily and exclusively for the purpose of the business.
In short. The £5 per night (and not 1p more) based on evidenced (receipted) expenditure is quite generous considering that you are only really purchasing items that you would have prchased out of your own pocket had yu not be away on business.
Note. you cannot claim the £5 through your self assessment. It is reimbursed to you by your employer and the employer receives tax relief on that (for which they need the receipts from you). If you spent £5.01 then non of it is allowable and your employer would not reimburse anything.
There is the option to reimburse your employer the additional money but I'm trying to keep my response simple.
Just as a final point. This site is actually for bookkeepers rather than businesses and employee's. I've pointed you in the right direction with the above but really you should be talking to your company accounts department and it is them who should be asking questions on here.
Thats nothing personal but its very easy for employee's to misconstru statements made here or take posts as gospel where this is actually a discussion forum and we may only give part answers.
As noted above by Joanne, the key here is get a receipt, don't spend more than £5 and ensure that you adhere to your employers requirements as it is they, not the tax system that determins whether they reimburse anything at all (you are not entitled to this payment, it is at your employers discretion but if they do pay it then there is tax relief for up to £5 available to them).
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Just as a final point. This site is actually for bookkeepers rather than businesses and employee's.
Wow - Shaun, I go out for the day and you are quoting ITEPA!
I know, it's just like the good old days on the site isn't it.
I figured that this one was one that a lot of bookjkeepers would be interested in so although ostensibly its a response to the poster, really it's a meatier answer for the regular readers... Might go back in later when I've got a few mins spare (ha ha ha ha ha) and fix all of the spelling and gramar mistakes in that one (hangs head in shame after rereading it at the low level of correlation between brain and fingers).
Hope you had as fun day out... That is counting towards your site annual holiday entitlement by the way!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Lol, yes. I hadn't noticed any typos - you know me, never wear my glasses when posting on here! Had of course noticed the lack of any appreciation for you giving up your own ultra busy and otherwise paid for time to respond at such length. Yes a fun day out for the team and clingons, wonder if I can put that on expenses. Site holidays??!!! How many days can I have? Bet the punters on here are hoping it's a lot! But I only ask as that cow of a boss of mine has only let me have two days this year and one of those was a Saturday!
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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
