Subsistence allowance question
I have a client company who, for reasons of simplicity and reducing paperwork, pays its employees and subcontractors a flat rate of £60 p.w. when working away from home. This is taxable on the recipients so is largely neutral from HMRC's point of view, give or take any differences in tax rates. The company pays the accommodation costs direct, usually in Travelodges.
I also act for a couple of the subcontractors - if they provide receipts, can they claim the actual costs of meals etc. against this £60 p.w. ? And can they claim anything without receipts ? Seems as though if they cannot, then nobody is getting the tax relief on these legit expenses.
Anyone ese come accross this, or have any opinions ?