HMRC’s official view on Subsistence for overnight stays is that expenses such as, laundry, magazines and telephone calls when working away from home, are allowable. What’s more, no receipt is required for these, and you can claim £5 per night (£10 per night if abroad). If you claim more than £5 then all this allowance will be taxable ie. if you claim £6 then the whole £6 will be taxable.
Day and overnight meals – receipted
HMRC official view on Subsistence for working away from home ( your trading address) is that you need receipts, eg for your lunch. It is suggested that the amount be restricted to around £5 per day
Pragmatically, this means you will have to log, potentially, 20 meals a month when completing your expenses. For this reason, Rodliffe has had a historical policy whereby we suggested it’s reasonable to claim £5 per day as subsistence. We feel this is still a reasonable policy, however, because of an increase in the number of expense related enquiries threatened by HMRC then we suggest you keep all your receipts for lunches, coffee, etc. to be on the safe side.
Example – if you decide to claim £100 per month subsistence then we suggest you keep all your receipts. If the receipts add up to £110 one month and £90 the next then you are broadly in line.
In addition to the overnight allowance above, if you are required to work overnight then the cost of an evening meal can be claimed with a reasonable receipt. We suggest that you should have worked in excess of 10 hours that day on the clients site in order to qualify.