I have a limited company client who shares a standard subsistence allowance to his customers £25 per night in line with HMRC .
Can his company claim this amount as an expense or is it only the items that he has receipts for?
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A company doesn't need to eat! How can it have a subsistence allowance?
Do you mean the company pays an employee/director a subsistence allowance? Whatever the company pays the employee is deductible for corporation tax. The amount received from customers is taxable. (So the company only pays tax on any excess.)
Is the subsistence tax free for the employee? That's a different question.
Is the company charging customers £25 per day for subsistence on top of the fee, and then paying the individual concerned £25 per day for subsistence?
If that's the case the £25 charged to the customer is, as stated above, part of the taxable income, and the £25 paid to the individual is deductible for corporation tax purposes.
Employer's national insurance is deductible for corporation tax purposes too.