The tax office used to have a good booklet - available now online
hmrc.gov.uk/employers/ebik/
whioch covers expenses and benefit in kind.
It doesn’t cover night out money but does provide advise on what else is allowable and which is tax / NI free.
One I love is the Annual Parties - costs not exceeding £150 per head - get that christmas party booked… but it must be available to all employees or you will end up paying NIC…
awards for long service…for at least 20 years service…
Free breakfast for employees that cycle to work…
Ive always paid myself night out money im company director my accountant has always said its ok. done it for years but now you got me wondering if its not right i would have to back date for years,
wonder what happens then. accountant told me it was ok to do but at the end of the day its me that would have to pay the back dated money owed to tax man. mmmmm
john
busy fool:
Ive always paid myself night out money im company director my accountant has always said its ok. done it for years but now you got me wondering if its not right i would have to back date for years,
wonder what happens then. accountant told me it was ok to do but at the end of the day its me that would have to pay the back dated money owed to tax man. mmmmm
john
I think you’re ok, if your company is Ltd
If you are an owner driver and do not have your company registered as a Ltd Company, you cannot claim night out subsistance, you must get receipts for all expences, ie food, parking ect which you can claim.
If you are a Ltd company you will pay your self a salary and you can claim night out subsistance as you are an employee of your company.
That is how it has been explained to me, if any one can correct me on the Ltd company bit, would be grateful.
If you are a sole trader or partnership you can keep receipts for all your overnight expenses, or you can agree a subsistance allowance with your local tax office. They prefer an agreement as it makes things a tad easier. They are only a phone call away.
When i was with blackpool tax office they were really helpful.
Now i’m with Coleraine tax office and they’re a bit harder to get round.
Shaun6820:
If you can pay a driver night out money (tax free) does that mean if you are an owner driver,can you pay yourself night out money tax free■■?
No an owner driver cannot take night out money tax free it will be classed as personal takings your accountant should tell you this. You can take meals though and claim them back
When I was was an OD, self-employed not as a Ltd company, I changed accountant, my new man asked why I wasn’t paying myself subsistance I said that I understood that this wasn’t allowed, he made a snorting noise and said he would speak to the tax office, Accrington in this case, and in 1998/99 tax year I got £22 per night out, which was well above the IR/RHA rate of the time.
I had the unfortunate experience of being picked for a full tax audit, and this wasn’t queried.
It seems to depend on your local tax inspectors interpretation, and, as has been said before, a good accountant is well worth the expense.