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)
- Insovent companies 865 19
- Rounding errors on CT600 184 6
- Xerocon 2016 1,194 33
- Leaving the VAT FRS Scheme or trying to stay as long as possible? 140 2
- New Build 172 1
- Mortgage Reference 497 6
- Entrepreneurs' Relief upon sale of a cash rich company 2,292 48
- BrightPay quirks 174 2
- HMRC now overriding SA bank repayment details on tax returns 794 20
- Website Content 117 1
- Personal Tax 618 12
- Claiming annual pension allowance top up in SATR 121 1
- Starting band for savings - for 2014/2015 159 1
- USA Tax Query 286 2
- Website costs (intangible assets) tax relief 431 5
- last minute request 640 6
- buying asset and settling vendor's debt 340 6
- Posting invoices with balance brought forward 374 7
- Disengagement Help! 1,731 25
- Is HMRC Basic Tools basically wrong? 985 6