Subsistence and Entertaining

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Dear Forum,

How does the Inland Revenue currently view genuine expenditure re a)Subsistence b)Entertaining?
i.e.respectively, are they allowable against S Assmnt
tax or e.g.partially with conditions attached?

I should appreciate an authoritative guideline on the treatment of such expenditure.

Yours Sincerely,

Andrew Cruickshank

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Subsistence and Entertaining

    Hi ya Andrew

    I wouldn’t imagine “entertaining” would ever allowable for anyone, but subsistence my friend would be.

    Regards
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Subsistence and Entertaining

    There is a general overview here:

    http://forums.aat.org.uk/forums/posts/list/16002.page

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Subsistence and Entertaining

    I know that you have quoted that subsistence is allowable but be careful on how you treat it.
    In enquiries that we have handled, the revenue have often argued that subsistence is not allowed. People have to eat whether they are working away or working at home and therefore it can be classed as a normal living expenses and not claimable. The way we got around it was to add back some of the cost, our argument being that additional cost was incurred by being away from the home area and that it wasn't practical to go home or carry sandwiches.
    They seemed happy with this and allowed a percentage. They advocated that £5 be deducted from the cost of each meal and the balance be claimed. we argued 50% and so far seem to get away with it.

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