Vat question?

Ive just started doing the books for my husband, and I am a little confused. He is self emplyed. Can someone tell me what I do with the receipts for food he gave me? Can they go against his vat? Its lunches when he is on the road, which is always, or dinners when he is away, which is a lot. I have a lot of receipts, they add up to a substantial amount of money, but I dont know what to do with them. I have a good accounts package which sorts it all out for me, but the info I put in has to be right of course. Anyone help?

You specifically can't claim for VAT on Food

Besides the VAT issue, the bulk of these items are not allowable as expenses against Income Tax either, and the simplest way for you to account for them is as drawings.

Everyone has to eat in order to live, so whether you are working or not, you still have to eat. PAYE employees have to pay for their own lunch/food costs and cannot claim any tax credit/relief for having to do so in the normal course of their work, so why should this same cost be regarded as a business expense for a self employed person?

Revenue do recognise that obviously, where the fundamental nature of a business involves travelling, or where occasional business journeys outside the normal pattern are made, then the cost of meals maybe allowed as an expense. So in the case of overnight travel away from the normal place of work you should be OK.

Your accountant should be able to advise you on how much, if any, of these expenses are deductible.

Thank you, all sorted now.