B&B - food allowances/purchases

System
System Posts: 100,534 🤖 Admin 🤖
edited 12:08PM in AAT member discussion
Just wondered whether anyone knew how much the Revenue allow B&Bs to put through their accounts in terms of cost of breakfasts/evening meals per guest?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:B&B - food allowances/purchases

    i would say the actual cost!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:B&B - food allowances/purchases

    :roll: Hi John :P

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:B&B - food allowances/purchases

    I am sure that the Revenue have a standard allowance because in practice the average B&B owner will buy the food for the B&B as part of their own weekly shop and so you would spend an eternity trying to analyse supermarket receipts.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:B&B - food allowances/purchases

    Yes, I think it works the other way - you calculate out a set amount for the owner's own consumption.

    Helen
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:B&B - food allowances/purchases

    Thanks for that Helen. I have not heard of it being done that way. Do you know how that calc would be done?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:B&B - food allowances/purchases

    Helen is correct.

    There are some set rates based on the amount of rooms and how many people would be consuming the foods.

    Your going to ask me for the fact sheet now aren't you? :twisted: Have a scan through HMRC i'm sure it'll be on there... somewhere!!

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:B&B - food allowances/purchases

    I read an update on this situation recently. Traditionally different HMRC offices agreed set rates for own consumption depending on the size of your family.

    HMRC then made an announcement that differing rates in different areas were not acceptable and that they would all be scrapped and everyone would individually have to go through supermarket receipts and calculate own consumption themselves.

    After significant lobbying HMRC backtracked on their statement and said that existing practice will continue.

    You will have to contact the tax office and ask for a copy of their rates - good luck with getting through to someone at HMRC who knows what you are talking about though!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:B&B - food allowances/purchases

    Hello

    I am in the process of preparing accounts for a B & B and have previously used a percentage rate for own consumption of food. This morning I decided to call the clients local HMRC office to ask for a copy of their rates, after reading the forum.

    I managed to get through to someone, but they had no idea what I was talking about. I was then put on hold while they asked a supervisor, then a mananger and I think whoever else was available. In the end no-one had ever heard of any rates for own consumption of food an hey advised me to either go through all the receipts or to carry on as I had previously.

    Good luck to anyone else who has phoned a local HMRC office

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