EXPENSE CLAIM GUIDELINES

Transcription

1 EXPENSE CLAIM GUIDELINES

2 October 2015 Contents Introduction 1 Subsistence 2 Accommodation 4 Mileage 5 Public Transport 6 Professional Subscriptions 6 Phone Charges 6

3 Toll and Parking Charges 6 Other 7

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5 Introduction This pack highlights the rules regarding claiming expenses in accordance with current HMRC guidance. If claims submitted do not adhere to these guidelines then they do not qualify to be paid tax free and will not be authorised. 1

6 Subsistence Subsistence is a type of expense that covers the cost of a meal (food and drink). Payment is made in accordance with HMRC guidelines. 5+ Hour rate A rate of up to 5.00 may be paid when you have been away from your home/normal place of work for a period of at least five hours and have incurred a cost on a meal. 10+ rate A rate of up to may be paid when you have been away from your home/normal place of work for a period of at least ten hours and have incurred a cost of a meal or meals. If you are paid an allowance under the five or ten hour rule, the late meal allowance can still be paid if you finish work after 8:00pm and buy a meal that you would normally have at home. However if you regularly finish work late because, for example, you normally work the afternoon or evening shift, you would not be entitled to use the late evening meal rate. 2

7 Do s: Claim for food PLUS a drink. Purchase coffee, tea, soft drinks, sandwiches, and pre-packed meals/salads from local shops or cafes on day of consumption. Obtain a receipt for all purchases. Don ts: Claim for anyone else. Claim for meals prepared at home. Claim for take-aways i.e. Indian, Chinese, and Pizza etc. unless they are near to the temporary workplace rather than on the way home. It is very important that you retain your receipts as we will sample check expense claims on a regular basis to ensure that only allowable expenses are being claimed by employees. 3

8 Accommodation Accommodation claims are split into three categories: Hotel inside London (maximum 100 per night) Hotel outside London (maximum 75 per night) Rent as per HMRC Dual Purpose Rules All of these accommodation claims must be accompanied by a receipt (or Rental Agreement) that verifies the amount claimed. For example, if a hotel inside London costs 85 per night then the claim submitted will have to match it or it will be rejected. You can only claim for nights where you are working. If you stay in a hotel for a week from the Saturday to the following Sunday but only worked Monday to Friday, then you can only claim for the 5 nights of Monday to Friday. Rent is only claimable when the Rental Agreement states that the property concerned is let for the working week and NOT for non-working days (i.e. weekends). If the rental Agreement clearly states it is just for the days you have worked then it will be allowable. In addition, the rent can only be claimed if you are renting the property for the purpose of moving closer to your assignment site. You will be asked to provide your home address and temporary rented address when you sign up for this purpose. 4

9 Mileage Mileage can be claimed for car, motorcycle or bicycle as per the below guidelines from HMRC: Vehicle Type First 10,000 miles p.a. 10,001+ miles p.a. Cycle 20p 20p Motorbike 24p 24p Car 45p 25p We will require postcodes for every destination that you visit in order to verify the expense claims that you make. The post code of your regular client site will be required and other locations will need to be supplied or the expense claim will not be processed. We will perform periodic audits every month and we ask that you retain petrol receipts to the value of the guidelines below: Engine Size Petrol / 100 miles LPG / 100 miles Up to 1400cc cc to 2000cc Over 2000cc Engine Size Diesel / 100 miles Up to 1600cc cc to 2000cc Over 2000cc This means that if you drive 1000 miles in a petrol car with a 3 litre engine you will need to provide around 240 in petrol receipts for that period. Please note that mileage can only be claimed for journeys that relate to your assignment. 5

10 Public Transport Public transport by air, train, tube, boat or taxi can be claimed as a tax-free expense when you are using it to travel to and from your assignment site. In order to claim it you must submit a valid receipt or proof of purchase, such as an expired travelcard. Oyster card transactions must be verified by means of an itemised receipt detailing individual journeys made for business purposes. Receipts for top up amounts will not be allowed. These details can be obtained from the Transport for London website by registering your Oyster card: Professional Subscriptions Professional subscriptions can be claimed if the subscription relates to the field you are working in and the subscription is on the HMRC list of approved subscriptions can be found here: Receipts will also be required. Phone Charges You can claim for business phone calls made. These must be highlighted on an itemised bill and all calls being claimed for must be verified. You cannot claim for mobile internet usage or monthly phone bills. Toll and Parking Charges Toll and car parking charges when they are spent on business related matters. You will need to supply a receipt for the charge or evidence that you are categorically passing through a toll area. This includes claims for the congestion charge. 6

11 Other All other expenses must be verifies internally before they can be claimed. You must submit your expense claim or liaise directly with your account manager about whether your claim can be authorised. If the claim is viable then it will be processed providing there are valid receipts and any other required documentation. Otherwise they are still likely to be rejected. 7