On 05/02/01 I asked a question about a new client that often travels large distances to do his job and sleeps in his vehicle 4-6 times a month. In previous accounts there are large sums for travel & subsistence, which I queried with the client as there was no expenditure records. I received the reply that he "booked nights out like a lorry driver and slept in the cab". He has records to establish when he was away overnight.
My query was, is there an accepted amount that could be claimed in a Sch D case.
The relevant ref seems to be Tax Bulletin 8 that clarified the position with regard to long distance self-employed lorry drivers, and then went on to state "We have been asked whether this treament can be extended to such drivers who spend the night in their cabs rather than take overnight accommodation. We have confirmed that it can."
It then goes on to state: "It should be emphasised that it is only 'reasonable' expenses which may be allowed and the expenses claimed must be supported by adequate contemporaneous records"
The Inspector's Manual is no clearer on the issue as it merely reiterates the Tax Bulletin.
This raises the following questions:
1. what constitutes reasonable.
2. what is meant by contemporaneous - is this receipts for actual expenditure or evidence that the person was away that night.
So is it possible to just claim for a reasonable amount (irrespective of what is actually paid, as they may have taken a supply of sandwiches) or is actual expenditure necessary and then the test of reasonableness applied (ie: greasy spoon - reasonable, Savoy Grill - unreasonable)
- What's the plural? 264 7
- deleted 511 24
- Use of aliases 478 15
- Builder - Roll over relief 224 13
- Self Employed travel 186 2
- PII and previous accountant 233 6
- xbrl accounts and HMRC template help 524 11
- Alphabet Shares - tax implications? 1,428 8
- What should I charge for unlimited advice and support ? 203 5
- DISCOUNTED RENT FREE PERIOD 138 2
- VAT - Quidco Cash-back 209 3
- Subsidiary or New Company? 71 2
- Splitting hairs with a national firm 248 3
- VAT on Import goods 141 4
- Sale of Van to a Guernsey company and VAT 105 2
- Director forgot to take salary for 2013/2014 721 8
- Accountancy Software Recommendation for eCommerce Business 84 1
- Client leaving and querying previous years accounts 672 25
- Awkward insolvency practitioner 162 1
- CGT on Self Build Plus Another Property 184 8
- Proposed Amendments to IAS 1 560
- Property exchange - 8-year legal delay following fall-out 409
- Accounting for Insurance Premium Financing 315
- IFA incorporation 286
- Mortgage interest claim on Buy to let hic up 271
- Can the receivers fees be allowed for tax? 271
- Moving into own BTL property - allowable costs 240
- SAGE Payroll Data for Import to MS Dynamics AX 228
- Will Ni be payable on the salary I receive abroad ? 198
- Life assurance gains anomoly?? 191