Subsistence allowance - self employed

Subsistence allowance self employed

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Client is a contractor in the construction industry. Paid via CIS.

Did a couple of contracts in last tax year that involved staying away from home for approx 20 nights on each job.

He decided to tow his caravan to sites near each job and stay in the caravan to keep costs down (instead of say a Travellodge).

He has asked if he can claim a daily subsistence allowance. I have advised no. Employees could claim subsistence allowance but I don't believe self employed people can.

Appreciate some one confirmimng this is correct. If he had paid for meals and kept receipts I assume he could have claimed these.

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By SXGuy
08th Jun 2021 16:22

ITTOIA 2005, s 57A, which allows reasonable expenses on food and drink taken during the course of business travel, provided:

a) The travel expenses themselves are allowable (e.g. not in the course of travel from home to work), and
b) The trade is, by its nature, itinerant, or, the trip is outside the trader’s normal pattern of travel.

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By Hugo Fair
08th Jun 2021 17:43

I'm too hot to research this properly ... but logic (that dangerous concept) tells me that if he is self-employed his business expenses can include anything that was incurred wholly and necessarily in order to carry out that business. This might well include the cost of basic accommodation (such as the Travellodge that he avoided using) ... but any kind of equivalent flat-rate allowance (whose purview is generally limited to employee expenses not businesses ones) is not available to his self-employment.

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By frankfx
08th Jun 2021 19:02

https://www.icas.com/landing/tax/working-away-from-home,-what-to-watch-f...

Recent tax cases to digest, from caravan dining table.

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By arthurallan
08th Jun 2021 19:55

I'm happy that he meets the criteria of being an itinerant worker and if had stayed at say a travelodge and had receipts for meals etc those expenses would have been allowable. However my query is that in the absence of these receipts etc could he claim an estimate for such expenses similar to the flat rate allowances available to an employee. My view is that he cannot claim a flat rate daily allowance but just wanted to double check this was correct

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