# contracting through umbrella company - claiming expenses



## KERRYK (19 May 2009)

Hi ,
I recently started working as a contractor through a certain umbrella/accounting for contractors company, all going well so far.
I have been encouraged to claim for all sorts of 'expenses' .
I am trying to reconcile what they say I can claim for with what is actually legal.
The main one I am wondering about is whereby I claim for restaurant meals ( now and again , not daily ) - as far as I can find out , these are not officially tax deductable but the umbrella company lets me claim them!
Any ideas on this?
Thanks , Kerry.


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## extopia (19 May 2009)

Meals are only expensible from a tax point of view when you are travelling for business purposes, and even then there are strict limits.


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## KERRYK (19 May 2009)

So If i am working based in Cork , I cant really claim for a meal down the street from where i work i suppose?!?


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## extopia (19 May 2009)

No, certainly not, assuming this is your normal place of work.


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## KERRYK (19 May 2009)

thanks extopia.
obviously if theres any trouble , I take it , not this crowd of dodgers!


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## WaterSprite (20 May 2009)

But if OP is working at a client site, then lunch is a valid expense - no?  My understanding was that meals weren't allowed to be expensed from your normal place of business only (e.g. your own home or office).


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## KERRYK (20 May 2009)

or how about a lunch meeting with clients or potential clients where I pick up the bill?


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## extopia (21 May 2009)

Client entertainment expenses are not tax deductible, AFAIK (PS I am not an accountant).


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## mathepac (21 May 2009)

That got shot down in the 80's if memory serves. Ahh the good old days ...


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## ANSOFF (31 Jul 2009)

Hi,

The umbrella company I am with allows me to claim expenses for substances depending on how many hours i am out of the house per day. I then have to submit my expenses on line but i do not have to send them my reciepts. I can claim up to £14.00 per day. Maybe this is the same for you....it might just depend on how much you are intitled to claim per day!

hope that was helpful for you.


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## Graham_07 (31 Jul 2009)

extopia said:


> Client entertainment expenses are not tax deductible, AFAIK (PS I am not an accountant).


 
Correct.


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## HamsterMind (4 Aug 2009)

ANSOFF said:


> Hi,
> 
> The umbrella company I am with allows me to claim expenses for substances ......



I tried that as well but my accountant wasn't happy about me claiming for "substances" at all ....

H


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## Brendan Burgess (6 Aug 2009)

From the Original Post



> I have been encouraged to claim for all sorts of 'expenses' .
> I am trying to reconcile what they say I can claim for with what is actually legal.



This is very questionable practice. It is not up to the manager to decide what is allowable. If/when there is a revenue audit, these companies and their contractors may well get a big hit.

Contractors through umbrella companies should be paying employers prsi at 10.75%.  If your manager is not doing this, you will have an exposure. 

Brendan


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## podowd (6 Aug 2009)

Client Entertainment is specifically disallowed by Revenue

Meals/Subsistence can be claimed as an allowable expense if incurred whilst working away from your normal place of work. 

The key point is "normal place of work", i.e. if you spend five days per week on a client site, that is your normal place of work and you can only claim for meals/subsistence on days spent away from that site. You cannot claim that your home is your place of work unless you actually carry out most of your duties from there.

Regards
Paraic
www.prima.ie


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