Apologies for the newbie style question, I'm brushing up on the basics to prepare for taking on some small private clients (I'm from mainly industry background).
Scenario: Client is a contractor who travels to client sites and stays in hotels for several days at a time. He operates via a Limited Company (he is the sole director & sole employee).
I seem to be reading conflicting information about what can be claimed for subsistence. Can the company put through the client's full food expenses (within reason) as tax deductible expenses? Or is the tax deductible amount capped at the subsitence scale rates (e.g. £5 for breakfast, £10 two meal allowance and £15 evening meal) and anything higher than this classed as a taxible benefit?
If they needn't be capped at the scale rates, what are the scale rates for? Is this just a different method which is allowed by HMRC whereby you claim a set amount without worrying about keeping receipts?
Same goes for the £5 overnight allowance - can the business reimburse the director for this regardless of actual spend or is this a cap on ad hoc expenditure for which receipts must be kept?
Many thanks in advance