Expenses & Subsistence Q

**Crossroads** · 13 August 2007, 12:46

Originally posted by youngguy View Post

I have a question regarding subsistence and expenses.

The company I am going to contract for books all train tickets and Hotels through a central department, which means than I will receive prepaid tickets and therefore not have to pay out anything from my personal or business bank account. Do I need to record these in any way as technically they are not expenses that I have incurred?

Also, they allow an allowance for dinner etc if you stay overnight. I will have to use my personal bank to pay, but should I get the company to pay the money back into my personal account or my business account?

YOU are not going to contract for anyone. Your COMPANY is going to provide services to a client.

Your CLIENT is taking advantage of their centralised booking dept and picking up the tab p no need to record anything, but I would keep details to back up any other expenses claim YOU make against your company at the same time.

Your CLIENT should reimburse your COMPANY for any additional expenses that they are contractually obliged to pay. YOU then claim from your company for whatever you want.

**oraclesmith** · 13 August 2007, 12:47

In my humble opinion :-

1. You don't need to do anything about the pre-paid tickets etc providing they are purely for business use for the client. If they prefer to pay for them direct that's up to them.

2. You should pay your overnight expenses (eg. dinner) direct from your business bank account, providing they are entirely to do with business. You then charge the client (maybe via an EB if you use one), through your invoice and remember to add VAT.

Again, this is just my opinion.

**Sockpuppet** · 13 August 2007, 13:22

The central booking issue got me as well.

I let it slide and if HMRC ask you've got a good defence in that DHL (who my co was contracting to) can get flights, rooms etc a lot cheaper than I can.

Its just good business sense.

**youngguy** · 13 August 2007, 13:39

Originally posted by oraclesmith View Post

In my humble opinion :-

1. You don't need to do anything about the pre-paid tickets etc providing they are purely for business use for the client. If they prefer to pay for them direct that's up to them.

2. You should pay your overnight expenses (eg. dinner) direct from your business bank account, providing they are entirely to do with business. You then charge the client (maybe via an EB if you use one), through your invoice and remember to add VAT.

Again, this is just my opinion.

in reference to point 2, they have a set amount which they give you (eg £100 a night) for dinner etc. They don't pay expenses per se, its a subsistence, meaning that if I only spend £30 I pocket £70, but if I spend £120 then I fork out an extra £20.

**r0bly0ns** · 13 August 2007, 14:18

pay your overnight expenses from your business account, then just add £100 per night to your invoice to them.

You need to find out from them if this is £100 including VAT or £100 + VAT first though.

**marc9477** · 13 August 2007, 15:26

Similar Situation

I'm in a similar situation, however I have an allowance per night, which I can only bill back to the client at cost. Meaning, if I don't spend it, then I can't claim for it. However, occasionally my hotel costs exceed my allowance. In that situation, am I allowed to claim the excess back against my company?

thanks

**r0bly0ns** · 13 August 2007, 15:28

yes, claim the whole thing against your company, then add what the client is willing to pay to their invoice.

Expenses & Subsistence Q