Expenses on year end financial statement

I'm a contractor working through my own limited company, during 2012 I worked on a contract that required me to travel to the UK / EUR almost every week and as you can imagine this was a fairly large expense. I charged the flights and hotels to my company credit card and was reimbursed monthly by the client.

Looking at my financial statement for that year travel & accommodation is listed at over 25K, this includes all mileage, flights, hotels etc for that year. Is the fact that its so high likely to trigger an audit on the revenues "contractor project"? My mileage and subsistence was quite low but the flights and hotels abroad bumped the figure up.

Just had a look at the CT1 form and i assume the flights and hotel costs that i incurred and was reimbursed for would go into section 1.4 "Amount paid to other persons to defray expenses incurred by director" - is that correct? And revenue will only be looking at the difference between 1.39 "Expense payments made to director" and 1.40 "Amount paid to other persons to defray expenses incurred by director"

xabi said:

I'm a contractor........ I charged the flights and hotels to my company credit card and was reimbursed monthly by the client.

Looking at my financial statement for that year travel & accommodation is listed at over 25K.....

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Who prepared your "financial statement"?

Did they use accounting software?

Your correct travel & accommodation amount is simply 25k minus the client reimbursement figure.

Thanks, prepared by a large enough accountancy firm, no idea what software they use. Where do revenue check when deciding who to audit, worried that the high amount on my financial statement might ring alarm bells even though expenses are low.

xabi said:

Just had a look at the CT1 form and i assume the flights and hotel costs that i incurred and was reimbursed for would go into section 1.4 "Amount paid to other persons to defray expenses incurred by director" - is that correct? And revenue will only be looking at the difference between 1.39 "Expense payments made to director" and 1.40 "Amount paid to other persons to defray expenses incurred by director"

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I havn't looked at a CT1 in quite a while...

If you are the owner and director, then 1.4 reads as amount paid by your company to other persons to defray expenses incurred by director (you). This hasn't happened in your scenario.

1.39 Expense payments made to director relate to payments made by your company to director (you). These are not payments from the client company to you or your company.

Did the accountancy firm prepare the CT1? If you have any questions about your financial statements, you need to clarify with them.

Not sure I understand 1.4 in that case, if I incur expenses why would I pay someone else? Anyway, can I check on ROS the figures revenue will see when determining audit candidates?