Sorry to try again with this question but guidance would be appreciated.
Employees working abroad can use HMRC daily worldwide subsistence rates.
These daily rates are not meant for self employed which seems bizarre but thats how it is.
My self employed client worked abroad for about 40 days in 14/15 but thought he could use these daily rates so kept no receipts of actual costs.
If he puts the HMRC daily rates on his tax return as a reasonable estimate are HMRC likely to disallow them or might they take a more flexible view and accept this in practice?
Replies (3)
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Risk
1. I agree with PNL
2. But think about this: Technically it is not employees that can use WWSRs but employers. Employers usually have some knowledge of who went where on business and for how long and why, and can set their own expenses/evidence policy. This gives a greater assurance that some expense has actually been incurred and that it was for business. If a sole trader says: I went to Paris for a week and don't have any receipts, who is to say that the trip actually happened and was for business purposes? So you might want to check that that evidence exists in case of challenge...