At Price Hill & Co Limited, we aim to maximise the take home pay of our clients. We use different mix of tax strategies to ensure that our clients take advantage of all legally available expenses and allowances.
By including legitimate business expenses, it is possible to reduce the tax burden and increase the take home pay.
Contractors and consultants working through their own limited company can claim subsistence as legitimate business expenses. However, they can only claim this if their contract is deemed to be temporary.
If the contract is deemed temporary and the consultant spends more than 5 hours away from “Home”, then the consultant can claim subsistence expenses. However they can only claim what they have actually spent and they must keep receipts.
Beware of claims that consultants can claim set amounts.
Consultants can only claim subsistence amounts that they have actually spent and they must keep receipts. The amount they spend must be reasonable and the full cost of the meal must for the consultant only.
There are many consultants who believe that they can claim a set amount regardless of whether they have had a meal or not. This is simply not true and these people will fall foul of HMRC rules.
1. Your contract must be temporary.
2. You must be away from your “home” for 5 hours or more.
3. You must actually spend the money and keep the receipt.
4. The meal must only be for yourself.
5. The expense must be reasonable.
6. Beware of Dispensation agreement claims.