Im preparing a dispensation for a client who is a contractor (Ltd Co - 1 man) working away from home in various locations mainly in the UK.
He has a company credit card and uses it for the following:
Personal costs which are always allocated to the directors loan account
He also uses the company bank account for personal expenses but these are all allocated to the directors loan account.
He does also pay for some food/drink say, £50 per month in cash and claim it back via an expenses claim supported by receipts
Occasionally he has some incidental costs such as parking or tube fares which are not supported by receipts but they are paid on the credit card.
When he travels do I need a dispensation for an overnight allowance for incidentals? (£5 uk, £10 outside UK?) Or can I just use this allowance?
What needs to go on the dispensation and is there a particular way to word this? I've been told dispensations are great when you get then but its difficult to get them! Can anyone assist?