ASK & DISCUSS INDEX

8 years, 8 months ago - Paddy Robinson-Griffin

Ask whoever you're claiming expenses from how they want to handle it.

8 years, 8 months ago - Ira Giorgetti

I meant my own expenses to HMRC on my tax return

8 years, 8 months ago - John Lubran

Whilst you can claim any tax deductible expense you declare to be valid, should any such item not be supported by a receipt or other record then HMRC could challenge. Every contactless transaction will be recorded on your bank statements but not the complete details. Keep a diary and an explanatory justification even if not a detailed and itemised receipt. For those claiming VAT rebates it has been asserted that a receipt that includes the VAT number of the supplier is essential, but it's not, provided that the supplier is identified and is provably VAT registered then any such transaction is a VAT transaction by adding the VAT number to any document/receipt manually after the fact. The essential principle is a matter of law, not administrative procedure. So long as ones claims are reasonable within the context of a given enterprise and supported by a reasonable declaration of truth then such a declaration, having similar force as an affidavit, is the truth in law, unless disproven beyond all probable doubt. The onus of disproving a declaration of truth lies with whoever is challenging it. Nevertheless it's always best to collect written/printed receipts when ever possible.

8 years, 8 months ago - Paddy Robinson-Griffin

As John says, a well-kept diary (which could take the form of individual slips for each journey) with bank statements to back it up will probably do, but I'd like to suggest a cleaner alternative - keep your business and personal banking separately. If HMRC challenge you that way, you can show separate bank accounts and easily satisfy them with backup paperwork. Failing that, how about getting a prepaid Oyster Card using "work" money and using it only for work travel, and you'll get a receipt reach time you top up.

The idea is to separate work and personal travel, and it's important to understand that travel to and from your regular place of work is very unlikely to be claimable. Let's say you live in zone 4 and have a job in Soho for 6 months - that would likely become your regular place of work, so not be claimable for travel. So even if "work" paid, it would be taxable. This is to keep things "fair" for regular employees and self-employed people. For instance, I use a company card to buy bus tickets to my office, and past tax on that as if it was a party of my salary from the company. If I then catch a train from my office to London, if it's for meetings, the company pays, if it's for pleasure I pay with my personal cards. I let my business account pick up the hotel bill if I've had meetings on both days. It's about separating out business and personal costs.

I doubt you're VAT registered as you didn't mention it, but just for the record, there's no VAT component of public transport. There almost always is in hotels. It's worth considering getting professional accountants advice if you're unsure about whether anything is a legit claim, or if you have even modestly complex affairs.

8 years, 8 months ago - John Lubran

Everything Paddy suggests is good advice.

Avoiding the hassle of argument and litigation is essential for those who don't enjoy such challenges. Simply trusting accountants and lawyers to sort ones affairs is most often a practical soloution.

I'm neither an accountant or a lawy but caprice of Circumstance has brought me into conflict with them more times than I can remember,; more than seventy cases with a win rate of more than 85%.. Not boasting , just qualifying.

Of significant relavence was the case of a friend who HMRC were pursuing for over £70k. My friends accountants advised that she had to pay; I advised her that she owed nothing. HMRC continued the pressure with threats. Her accountants got scared and directed my friend to a big city accounting firm where they had reservved parking places for their Range rovers, wore Armani suites and and owned a Tuscany villa. This firm of experts upheld the opinions of her parochial accountants and HMRC , told her she had no argument (my argument) and ought to pay asap or be penalised with additional penalties. I told her that I was appalled by the lot of them and that all the accountants were wrong, as was HMRC. Because I had won an earlier controversial case with her she took the courageous option of believing my interpretation of tax law and encouraged by my absolute certainty she challenged HMRC . To cut this long story short; I wrote to HMRC explaining why my friend owed nothing and inviting them to test the issue in court. A week later they replied by formally dropping their claim and my friend kept her £70k and a lot more as she continued to save on tax every year. One can hardly make it up.

8 years, 7 months ago - Michael Trott

I think your easiest option is to buy a separte Oyster card for work and record every jkourney in a diary
If you drive you can claim 45p per mile for the first 10,000 milez I belive you can claim 25p per mile for cycling

It's all on the HMRC WEBSITE

8 years, 7 months ago - John Lubran

Ironically, government websites, whilst a useful starting place, are not the definitive font of correct information, especially with regard to law; if it were not so then these agencies, including HMRC, would not be losing so many court cases. A cautionary position might be to consider that ' they would say that wouldn't they!'.

8 years, 7 months ago - Zara Plessard

I have contactless and have an online account so I can download statements for individual days or travel and then save those as my travel receipts. It is very simple and straightforward. And, as others say, I write in my diary every job and that I need to claim for travel on that day. Then your records are all in place.