Travel and accommodation reimbursing

xabi

Independent contractor uses company credit card to pay for any travel and accommodation while working on various projects for clients. I then invoice the client for these expenses which gets paid into my company account.

Some projects/clients don't allow travel expenses so I usually claim the civil service rates directly from my company for these (small enough amount over the year 2 - 4K).

So, should the expenses that I claim back from the client be shown under 'travel and accommodation' in my yearly return? These expenses can be quite high some years (25K one year) as there's a lot of international travel involved, my concern is that it could trigger an audit if it looks like im reimbursing myself directly from my company when in reality its my company that's getting reimbursed from client. How do I keep them separate?

relax carry on

xabi wrote: »

Independent contractor uses company credit card to pay for any travel and accommodation while working on various projects for clients. I then invoice the client for these expenses which gets paid into my company account.

Some projects/clients don't allow travel expenses so I usually claim the civil service rates directly from my company for these (small enough amount over the year 2 - 4K).

So, should the expenses that I claim back from the client be shown under 'travel and accommodation' in my yearly return? These expenses can be quite high some years (25K one year) as there's a lot of international travel involved, my concern is that it could trigger an audit if it looks like im reimbursing myself directly from my company when in reality its my company that's getting reimbursed from client. How do I keep them separate?

I'm a little confused. Are you as an individual incurring the expenses at all? You state that the company credit card is being used to pay for them.

xabi

Yes, I'm incuring the expenses as an individual and paying for them on my company supplied credit card, I then invoice the client for any expenses incurred. I'm the company director.

Alan Shore

xabi wrote: »

Independent contractor uses company credit card to pay for any travel and accommodation while working on various projects for clients. I then invoice the client for these expenses which gets paid into my company account.
so when you travel the company pays the invoices for your expenses. Then the company invoices the client. That's fine.

Some projects/clients don't allow travel expenses so I usually claim the civil service rates directly from my company for these (small enough amount over the year 2 - 4K).
but you have already said that your company pays the bills?

So, should the expenses that I claim back from the client be shown under 'travel and accommodation' in my yearly return? you don't claim anything back from the client - the company does and its income for the company

These expenses can be quite high some years (25K one year) as there's a lot of international travel involved, my concern is that it could trigger an audit if it looks like im reimbursing myself directly from my company when in reality its my company that's getting reimbursed from client.
the company gets reimbursed as income and then pays the expenses for you or pays you for your civil service claims which is an expense. Two seperate things.

How do I keep them separate?

The biggest question is whether you are entitled to claim expenses from the company? Check out the Contractors project.

xabi

Alan Shore wrote: »

The biggest question is whether you are entitled to claim expenses from the company? Check out the Contractors project.

Thanks, that answers my query, I'm well aware of the contractor project and all my claims using the civil service rates are legit.

So, the expenses paid for while traveling on the company card are considered as business income and shouldn't be listed as travel on my returns?

relax carry on

xabi wrote: »

Yes, I'm incuring the expenses as an individual and paying for them on my company supplied credit card, I then invoice the client for any expenses incurred. I'm the company director.

You and the company are separate entities. If the company pays for the expenses incurred via the company credit card, the company incurred the expense not you. Unless there's something I'm missing, you can't claim expenses you as an individual did not incur.
Paying yourself expenses you yourself did not incur has popped up on Revenues radar lately.

xabi

relax carry on wrote: »

You and the company are separate entities. If the company pays for the expenses incurred via the company credit card, the company incurred the expense not you. Unless there's something I'm missing, you can't claim expenses you as an individual did not incur.
Paying yourself expenses you yourself did not incur has popped up on Revenues radar lately.

I don't claim anything back personally after paying for them on the credit card, like I said earlier, I only claim mileage personally if the client doesn't cover it, this would be within the rules laid out under the contractors project.

My query is - should expenses paid for on the CC while on business show on my yearly returns as 'Travel and Subsistence'

xabi

Just looking at my Financial Statements from 2012, on the last page it lists, among other costs, 'Travel and accommodation' - 24,000EUR. This 24K was paid for by the company and invoiced to the client. Is this the figure that gets submitted to Revenue? If so, does it make it look like im personally claiming that much?