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)
- Accounting for cash put into Ltd 22 1
- LTD home office - would HMRC seek to disallow 1,253 8
- RTI and corrections to payroll 1,228 13
- Accountancy practices - are you closed over Christmas or do you let your staff take it off? 966 29
- You know its over 363 4
- HMRC BACK AND FORTH FIGHT ON BTL PROPERTY ALLOWANCES 503 9
- How do you find shareholders of a Cyprus Company ? 235 13
- Valuing my fast-growing internet business for transfer of goodwill on incorporation 189 2
- HMRC won't let me set up online DD for PAYE 175 2
- What is the amount of dividends received as a shareholder that requires registration for self assessment? 276 3
- Cocaine anyone? 521 8
- Late Registration for VAT 496 13
- EIS/SEIS 154 1
- Amortisation of Goodwill 281 1
- TaxCalc Accounts production 430 5
- Depression - HMRC penalties case won because of this illness. 432 12
- Solicitors now, Accountants next 729 10
- How come if you claim benefits you are not entitled to you either have to pay a 50% penalty or are sent to court and either fined or sent to prison (sometimes suspended) and end up with a criminal record. 565 10
- ACCA - still making me laugh 600 4
- Personal pension 406 9
- Hive up 493
- Accounting referance change & deficient accounts. 462
- corporate hierarchy 444
- Advice - 276
- Anyone had HMRC refusing to act on EPS database glitch? 228
- WWOOFers 219
- Co. limited by Guarantee now closed 210
- Art Gallery - Splitting a property between business and personal use 206
- Tax liabilities in USA for warehoused products 185
- Mutual Trading - Exempt CT Income - Do I need clearance? 177