Can I claim travel expenses?
Yes. Travel expenses can be claimed however there are rules to be considered as your workplace must be a temporary one. A temporary workplace is one that will last less than 24 months. If you become aware that your assignment will exceed 24 months, main site travel expenses should not be claimed from this point onwards. Copies of all receipts should be retained and in the case of mileage, an accurate log should be kept.
How do I claim mileage?
HMRC guideline allowance is 45p per mile for the first 10,000 miles and 25p per mile thereafter (tax year 2013-2014) and other rates apply for motorcycles and bicycles. Main site mileage should only be claimed if the assignment is deemed to be temporary (i.e. you expect the assignment to last for less than 24 months). As soon as you become aware the assignment will exceed 24 months, any main site travel expenses should not be claimed as this will be categorized as a permanent work place.
Can I claim for my lunch?
Yes. Reasonable subsistence expenses for working away from home or your normal place of work can be claimed. Keep copies of all receipts and make sure the sum you claim is the exact amount incurred, not round sums.
Can my company provide me with a mobile phone?
Yes. Further advice on claiming for a mobile phone can be obtained from us, including what you can claim for when using your home as an office.
Can I claim for using my home as an office?
Yes. Further advice can be obtained from us.
Can the company pay for childcare costs?
Yes. Every employee can claim £55 per week from the company to help with childcare costs, as long as they are paying a registered child-minder.
Can I claim for accommodation if I am working away from home?
Yes. If you are away on business overnight, you can claim the cost of your accommodation. You can also claim expenses for rented accommodation if you need it for business purposes as long as it is not your main personal private residence.
Can the company pay my personal expenses, e.g. a suit or dry cleaning?
This is not advisable. Personal expenses paid by the company can be allocated as a repayment if the company owes you money, or can be treated as an allowable company expense but you will have to accept a taxable personal benefit, otherwise it’s a loan and accumulates a tax liability.
Can the company buy a computer?
Yes. If it is primarily for business purposes, but there may be a personal tax charge for personal use.
What entertaining can the company pay for?
The company can pay for business entertaining, but it will not be tax deductible.
Can the company pay for a staff party?
Yes. The company can pay up to £150 per head per year towards functions, such as a Christmas party. If you exceed £150 per head, then the total amount becomes personally taxable as a benefit.
Do I need receipts for expenses?
Absolutely. You must be able to provide proof of all the company’s business expense claims for a period of 7 years after the claim has been made and 6 years after the company has been wound up. This is in case HMRC decide to audit or investigate.
Can I have a company car? And if so what are the tax implications?
The company may provide you with a company car and fuel for personal use. However, this will create a taxable benefit in kind (based on the actual list price of the vehicle and not the purchase price applied to a detailed formula). Be aware of the tax implications – both for you and the company. We can help you decide if it is better for the company to provide a car, or for you to use a private car and reclaim mileage.
Posted in: FAQ