Expenses - Taxed or not?

Keedowah

Hi guys,

Just wondering if anyone knows if expenses are meant to be taxed? Or is there a limit on the amount that you can claim?

Cheers,

Keedowah

Degag

Keedowah wrote:

Hi guys,

Just wondering if anyone knows if expenses are meant to be taxed? Or is there a limit on the amount that you can claim?

Cheers,

Keedowah

It depends on the expenses, if you can be more specific i can tell you.

Keedowah

travel + Food and drink.

How do "per diems" relate to this?

thanks

Degag

If the travel and food and drink costs are staff related, they are allowable - ie. not taxed.

What do you mean by per diem? I should explain, i'm an accounting student, i haven't come accross this phrase.

Keedowah

if i am going to be staying away from home i get an allowance per day "Per diem" that can be spent on food and accommodation - is that taxable?

Eoin

Keedowah wrote:

if i am going to be staying away from home i get an allowance per day "Per diem" that can be spent on food and accommodation - is that taxable?

I don't this is taxable - though I'd imagine there is a ceiling. You may not even need to show receipts.

Keedowah

thanks for the help!

Degag

Keedowah wrote:

if i am going to be staying away from home i get an allowance per day "Per diem" that can be spent on food and accommodation - is that taxable?

No its not taxable and there iisn't a ceiling per se, however if the figure is very large, a certain percentage could be taxed.

cee_jay

I am in Scotland with work at the moment and I was told by accountant at work that if they were to give me a daily allowance, then I would have to be taxed on it as this is seen as a benefit in kind.
However, if I pay for everything, keep the receipts and expense that back, then I would not be taxed on it.

Degag

cAr0l wrote:

I am in Scotland with work at the moment and I was told by accountant at work that if they were to give me a daily allowance, then I would have to be taxed on it as this is seen as a benefit in kind.
However, if I pay for everything, keep the receipts and expense that back, then I would not be taxed on it.

I think you are probably right there. If you are actually given the money by the company then you will be taxed. I was under the impression that the OP was talking from a company standpoint and not personal. Maybe i'm wrong???

lynchie

cAr0l wrote:

I am in Scotland with work at the moment and I was told by accountant at work that if they were to give me a daily allowance, then I would have to be taxed on it as this is seen as a benefit in kind.
However, if I pay for everything, keep the receipts and expense that back, then I would not be taxed on it.

Worked in London for over a year.. flying out on a Monday back on a Friday. I was given a per diem of about £40stg a day for food and drink. This was not taxable and I didn't have to show receipts for it. Only had to keep receipts for hotels, travel etc.. which I claimed back separately from my company.

Keedowah

nope - was talking personal there.

Borzoi

cAr0l wrote:

I am in Scotland with work at the moment and I was told by accountant at work that if they were to give me a daily allowance, then I would have to be taxed on it as this is seen as a benefit in kind.
However, if I pay for everything, keep the receipts and expense that back, then I would not be taxed on it.

Get a better accountant - look up the civil service rates for 'per diems' it's usually found near their mileage allowances. If you're getting similar sums, the revenue won't touch you.

magpie

Take the per diem, then keep all receipts and also run these through as expenses.