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Leger


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Estimates or receipts?
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Got a query tonight from my old next door neighbour's brother about doing a CIS tax return. He wanted to claim for washing uniform, food allowance working away, home office and stationary, despite no receipts.  No real quibbles about washing uniform and I would put home office in at £200 with the priviso that it may get rejected, but can an estimate for food be used?  I'm pretty certain they can't and that only receipts can be used but this guy seems to think there is a £15 a day allowance, and that's what other lads on site claim through their accountant.  Sounds like a bloke down the pub scenario but I just want to double check that I'm right first.

 



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John 

 

 

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Cheshire


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Hi John
It's called benchmark scale rates. Or bespoke scale rates (agreed with HMRC). It's for employees.

From April the requirement to check receiots under the scale rates was to be abolished, under the 2017 budget. (Need to check if the change went through, can't recall seeing it).

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 Joanne 

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Artois


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Hi John

I agree with Joanne, I thought the scale rates were only for employees.

I always ask for receipts or at the very least proof from bank statements that the expenditure occurred which would at least give you some sort of argument in the event of an enquiry.



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Doug

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Leger


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Hi Joanne and Doug

Twas what I thought, but thanks for confirming.



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John 

 

 

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Leger


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As an update the client has provided self billing invoices (example) which show an allowance for accommodation and travel time paid for.  I therefore feel justifed in claiming for mileage and accommodation but would like the opinion of others. He has his own van which I also have paperwork for as initially I was going to do AIA but think a better result would be mileage. I'll decide on that when I do the figur but1.png



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Artois


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HI John

I had something similar a couple of years ago where the subby was getting paid travel and a daily living allowance whilst working away, he used his car so I also claimed the mileage but I made sure that I got the milometer readings from the MOT as well as the present reading so that I could work out that the car he was claiming for had actually done roughly the amount of miles that the round trips would add up too, he did also have some fuel receipts which showed that he sometimes filled up at the place where he was working, his bank statements also showed places where he had eaten of an evening while away. 

I think the main thing to be careful of is that if there is a group all working away together that they all just jump in one car but then all of them claim the expenses, which is fine if it is your client with the car.



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Doug

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Cheshire


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Disallow. That way he learns his lesson!

Being thick, who has given whom the self billed invoices? When you say the client provided, would I be right in saying he provided them to you, but they are from his 'cough' employer? I read it first as he is self billing to the 'cough' employer, which is the normal way round.

Cough cough. Overtime!!

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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
Leger


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Cheshire wrote:

Disallow. That way he learns his lesson!

Being thick, who has given whom the self billed invoices? When you say the client provided, would I be right in saying he provided them to you, but they are from his 'cough' employer? I read it first as he is self billing to the 'cough' employer, which is the normal way round.

Cough cough. Overtime!!

Hi Joanne. The coughing has been noted, and thanks.    The contractor has issued the invoices on a self bill basis. The subby has given them to me. The bit I've shown you is from the second sheet of the invoices which gives the detailed breakdown. I'm satisfied the invoices are genuine, and I also have the statement of income and deductions for each month.

Hi Doug, good points raised from you as well.

 



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
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