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)
- Enquiry into tax return - how co-operative would you be? 341 8
- Halloween - do you celebrate it? 1,405 47
- Interest on HMRC contract settlement 162 3
- Goodwill gesture for providing work 432 12
- Share premium or Directors Loan 733 30
- VAT reconciliation and VAT return on Sage 108 3
- What would you do in this situation? 144 5
- Filing a P87 (professional fees) before year end. 134 2
- Recommendations for payroll/AE software? 603 13
- More HMRC on gov.uk 637 11
- Rollover relief - when does gain crystallise in this situation? 88 1
- Offshore company transferring assets to a UK individual. 342 14
- Interest Free Loan - Salay Sacrifice? 244 4
- Research and development - repayment timescale 220 5
- Sole trader hid directorships. 391 6
- NOVA 555 1
- Clearing payments on account/ Sage 50 275 10
- Regional Development Grant 125 4
- Problem ex client...again.. 2,418 21
- Company car without a salary 235 2
- Bonus Bonds 391
- Insolvency and whistle blowing 378
- Transfer of funds into recently set up company 289
- TPR imposes first penalty notice fines 259
- Box 8 VAT Return - deposit payment 187
- Husband proposes to buy the car as Director unable to acess finance 179
- Finance Lease 157
- Company Car Lease 154
- Form 42 149
- Demerger Reserve 132