CIS - subsistence allowances

paulb

I have recently been approached to do a tax return for a CIS contractor who is under the impression that he can claim a £35/night subsistence allowance and a £10/day food allowances under HMR&C rules. This is my first experience of CIS contractors and I can't find anything to support these allowances. Is this a classic case of "the man down the pub said I can claim this..."?!

groundy

Cant say I've ever come across this ruling. I would always adivse to only claim expenses were receipts can be used to prove the expense. However this is easier said than done with subcontractors.

T.C.

I do alot of work with CIS and have never come across this one! I always ask for receipts.

claudialowe

No way - receipts only!!!!!! That could well end up as more than they were earning!

I will though let them do the 40ppm, if they can tell where they have been working!!!

Claudia

Paul24

I would suggest that this may have been something the sub con may have got away with until a few years ago. I know when I was working in construction a couple of years ago, the relationships between contractors, and 'regular sub contractors' was under some scrutiny, as some should really have been on the direct payroll.

PAMDILL

When working for a company in industrial pipework most of our employees worked away - anywhere from Western Isles to Cornwall.

We used to make them send in receipts for Bed and Breakfast etc. I then applied for a dispensation from HMRC for overnight subsistence allowance of £30/day. This was granted and from then on I just had to keep a note of the sites and men per site and the employees could get that amount tax free. Meals such as lunch and dinner were not allowed on tp of that amount as the feeling was that if they were at home they would have shopping bills etc.

It is therefore possible that a sub contractor could be granted the same amount as allowable expenses but only if they had proff of where they were working.

Paul24

PAMDILL wrote: »

When working for a company in industrial pipework most of our employees worked away - anywhere from Western Isles to Cornwall.

We used to make them send in receipts for Bed and Breakfast etc. I then applied for a dispensation from HMRC for overnight subsistence allowance of £30/day. This was granted and from then on I just had to keep a note of the sites and men per site and the employees could get that amount tax free. Meals such as lunch and dinner were not allowed on tp of that amount as the feeling was that if they were at home they would have shopping bills etc.

It is therefore possible that a sub contractor could be granted the same amount as allowable expenses but only if they had proff of where they were working.

I thought the idea with a subcontractor is that they invoice the company a total amount (which could include elements, such as subsistence) and then if the amount differs from the amount agreed prior to work, the invoice would be disputed the same as any other supplier's invoice. I think the difference in treatment between a sub-contractor and a direct employee is somewhat blurry (for want of a better term) however, this was my understanding of the system. Interesting how people perceive it differently.

Paul

paulb

Thanks for all of the replies so far. I tried ringing the CIS and Self-Assessment helplines yesterday and neither would give me any sort of figure that could be claimed! The guy on the Self-Assessment helpline got a bit miffed when I asked if it was really just a call centre! He was very non-commital when I asked if there was any question that people on the helpline could answer!!