Subsistence rates versus vouched expenses

travellingkitty

I have just moved from sole trader to limited company. I have a fair amount of travel to clients in my business - some long days, some overnight. One of the reasons for changing to a limited company (amongst others) is to avail of the Civil Service mileage and subsistence rates for work related travel.

However, I was reviewing the situation with my accountant and neither of us where sure whether I can choose on a trip by trip basis whether to apply the overnight subsistence rate or vouched expenses for a hotel and meal or whether if I elect to use subsistence overnight rates I have to always use them.

The current normal rate for the domestic overnight subsistence rate (first 14 nights of the year) is EUR133.73. If my client is in Dublin a hotel and meal overnight could easily exceed this amount.

My assumption is that I can use vouched expenses instead of subsistence if it is more tax efficient to do so. However, my accountant wasn't sure - he's checking it out but honestly he can be a bit slow and I thought I would ask if anyone can provide advice or insight on this.

Many thanks in advance.:)

Gloomtastic!

I don’t know the answer for definite, but then again, I’m not a qualified accountant (and charging you for their knowledge! :rolleyes: ). But common sense would say you choose one expenses claiming system and stick with it.

I would assume Revenue would take a dim view of you changing expense systems at will, due to how much it is to your advantage, as opposed the Revenue’s.

pedroeibar1

Assuming you own the car (not the company) you charge the civil service mileage rate for the distance (from your office, not home) to the gig. You charge out-of-pocket exes for hotels and produce receipts. Have a pint with any civil servant and s/he will put you right, experts at it!

Bandara

Have to say I would not be at all impressed with either the knowledge, or the lack of urgency in assisting you by your accountant.

Isn’t that what you pay him for !

Alkers

In my company we can claim the subsistence rates or submit receipts if it is more. So you can stay in a b and b and claim the 133 or you can stay in a 5* hotel and expense the full bill.
Btw the mileage distance we submit is the shorter between either your home or your normal place of work and that location.

Glass fused light

pedroeibar1 wrote: »

Assuming you own the car (not the company) you charge the civil service mileage rate for the distance (from your office, not home) to the gig. You charge out-of-pocket exes for hotels and produce receipts. Have a pint with any civil servant and s/he will put you right, experts at it!

Unless things have changes the distance is the lower of between your office and home.
If you a heading directly to Dublin airport from home and live in Swords but your office is in Blackrock you can only claim milage from Swords. If you were in the office and leaving from there it is from the office.