Staying over-night at friends

**minstrel** · 22 July 2007, 13:30

Originally posted by RockyBalboa

Hi

My client has said I am able to stay over-night at a friends place and they will reimburse me £30.00 for the night (working away from regular client site):

"Please note the payment is intended to: i) contribute towards the costs incurred by the host and/or a gift in kind ii) cover any additional meal or incidental expenses incurred by the individual. Therefore meal allowances cannot be claimed on top of the £30 allowance."

Do I then charge my LTD £30.00 for the night and then claim that from the client? Would I need some sort of receipt to show my client?

Thanks.

Invoice the client £30 (+VAT) for each night you stay at a friends.

Technically, you should then only claim back from your company actual expenses incurred and therefore need receipts for any "gift" you get your friend to show your appreciation.

Some guidance here:

http://www.hmrc.gov.uk/manuals/eimanual/EIM30073.htm

**RockyBalboa** · 28 July 2007, 16:38

So do I charge my limited co 30.00 per night? or 30.00 + vat per night?

**ASB** · 28 July 2007, 17:05

You charge it whatever you want. If you don't want it to be taxable you charge it the cost of the gift for your friends. The link minstrel posted is pretty clear.

I don't imagine you personally are vat registered which should make the answer to the vat question fairly obvious.

**sathyaram_s** · 28 July 2007, 19:49

Your ltd co charges the client 30+VAT ...

You claim 30 as expenses from your company ..

VAT goes to VATman ;-)

Originally posted by RockyBalboa

So do I charge my limited co 30.00 per night? or 30.00 + vat per night?

**RockyBalboa** · 28 July 2007, 20:00

Do I need to get my friend to make a receipt?

**Sockpuppet** · 28 July 2007, 22:11

To be honest if this is a "most nights of the week" scenario then I would just get it added to your daily rate and give it to your friend cash in hand (out of your own allowance) much simpler.

**RockyBalboa** · 28 July 2007, 22:23

Hi

It's just now and then. It literally is at a friend's place which is more convenient for work at a particular client site for me, and cheaper for the client.

**Sockpuppet** · 29 July 2007, 02:44

Could point to IR35. I know clients booking hotel directly for you is bad so this could also be seen as bad.

Might want to get the contract reviewed.

**RockyBalboa** · 29 July 2007, 11:24

Why would this be seen as within IR35?

Sometimes I am at more than one site and the client offers to pay for a hotel overnight. It's just easier for me to stay a friends.

Staying over-night at friends