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Employee Related Expenses (NHS worker)

NHS worked employed by agency wanting to make an expense claim (not through employer)

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I have an employer that is an NHS worker , working through an agency (on payroll).  This employee wishes to make a claim for (lunch subsistence, Overnight accommodation and mileage.  The employee has told me that he doesn't have receipts for lunch/dinner, and the accommodation overnight is provided by either the NHS , or he stays at family/friends if doing a really late shift/night shift.   He has also told me that he works at different NHS sites, and uses his own car, hence the travel claim.   His other colleagues are also claiming through other accountants for a Subsistence allowance for lunch/overnight stays .e.g a standard daily rate of £10 for lunch, and then about £40 for late/night shifts on each occasion.  It seems to me that the employees are not actually incurring cash expenses for lunch/accommodation that can be proved, and therefore there is no claim to be made.  However I cannot find any information online to support me to understand if it is legitimate for my client to put in a P87 claim (except for Mileage that is).

Would be very keen to hear thoughts and learn something! 

 

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By David Ex
08th Sep 2021 13:19

Raj Accountancy wrote:

Would be very keen to hear thoughts and learn something!  

Have a look here:

https://www.gov.uk/government/collections/tax-and-national-insurance-con...

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Replying to David Ex:
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By Raj Accountancy
08th Sep 2021 17:17

Great thanks for this really useful knowledge nugget!

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By Paul Crowley
08th Sep 2021 14:54

Most of the tax free allowances are intended for employees getting allowances from employers
The problem is wholly exclusively and necessarily.
HMRC opinion is that if the three tests apply then employer would have paid.
Otherwise I and every other taxpayer is subsidising the bad employer

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By Raj Accountancy
08th Sep 2021 17:18

Totally agree with the business definition (Wholly and exclusively) but like you said its when it has been incurred. The expenses in this case haven't even been incurred the employee is trying to claim an allowance through the P87.

Thanks again - I think I've reached my first conclusion. I normally go through 3 conclusions before calling it a day!

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Replying to Raj Accountancy:
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By Paul Crowley
09th Sep 2021 19:25

Maybe I was not clear
The employee test is more stringent that the business test fot the employer.
For the employee to claim the word necessarily is added

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By Leywood
09th Sep 2021 20:21

That extra word is key and one that an employee of one of my clients cannot seem to get through his thick little head. Having been an employer in the past, he is a nightmare to deal with. Now robustly dealt with, as was his new employer whom I threatened to sack if the little pillock rang me again.

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