Subsistence expenses paid directly from company account

Subsistence expenses paid directly from company...

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Hi,

I have a small construction client (limited company) with 2 director/ employees. When on away jobs they pay for their lunch etc through the company bank account. However the amounts are getting higher and higher, and I know these lunches are in pubs with a few pints of beer thrown in.

After work pub trips are also paid for, on the grounds of 'meeting with clients'.

I have 2 questions: Firstly is there a limit for subsistence lunch payments (they are definitely travelling away from their normal workplace) - surely £50 each for lunch is excessive? Would there be a BIK issue?

Secondly, are entertaining expenses ever allowable - for example if they were meeting a prospective client in a pub to discuss future work?

Please note these are all paid through the company bank account; they are not reimbursed claims.

Any help greatly appreciated....

Replies (5)

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By johngroganjga
29th Jun 2015 14:51

No  - entertaining of actual

No  - entertaining of actual or potential suppliers or customers is never allowable.

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By ccosson
29th Jun 2015 16:57

Thank you...any idea about limits for subsistence payments?

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By KH
30th Jun 2015 11:41

limit for subsistence is "reasonable"...

"Reasonable" is a wonderful word, so for me £50 for lunch inc. half bottle wine is not excessive for a company director, way too low for the Queen, and way to high for a brickie .... and no, I don't yet have the Queen as a client......... .....................

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By Whinger
30th Jun 2015 12:39

subsistence

I'm always interested on the treatment of subsistence.

For example, if i (a Limited company sole director) were to travel say 150 miles away from the office to see a few different clients on one day, I leave at 6am i get home at 1am the following day.

Could I claim reasonable expenses for Breakfast, Lunch, Evening dinner? Paid by the company, included on P11d and then claimed as allowable expenses on my personal tax return.

How far away from the office would you need to go to be acceptable?

I asked 2 separate HMRC people the above question; one said yes it's fine the other said no....

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By Howard Marks
30th Jun 2015 12:48

Rule of thumb for me

Whinger wrote:

I'm always interested on the treatment of subsistence.

For example, if i (a Limited company sole director) were to travel say 150 miles away from the office to see a few different clients on one day, I leave at 6am i get home at 1am the following day.

Could I claim reasonable expenses for Breakfast, Lunch, Evening dinner? Paid by the company, included on P11d and then claimed as allowable expenses on my personal tax return.

How far away from the office would you need to go to be acceptable?

I asked 2 separate HMRC people the above question; one said yes it's fine the other said no....

 

If the travel goes, so does the subsistence.

 

 

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