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BOOST YOUR INCOME WITH SUBSISTENCE
If you incur a cost when on an assignment, claiming back expenses can really make a difference to your take home pay. How? Because business related expenses reduce the amount of tax on your income.
Along with travel, accommodation, mileage, car parking, professional membership, safety wear, incidentals, tools, mobile phone calls and professional courses, Sterling Solutions also offers ‘subsistence’ as a type of business related expense too.
What is subsistence?
Basically it’s the costs associated to food and non-alcoholic drinks that you consume during the working day, it’s based on the number of hours you are actually away from your main residence or temporary lodgings. You do not necessarily need to be working away from your hometown to claim subsistence.
What is defined as a ‘working day’?
A working day is the contracted hours you complete within a 24 hour period.
Away time
Away time is the total time you are away from your home or temporary accommodation during a working day. For example, you leave home at 8am for 1 hour commute, complete a 7.5 hour working day and travel home. The total away time from home/lodgings is 9.5 hours.
The workplace has to be outside your home or accommodationTo claim for subsistence, you have to physically leave your home, or temporary accommodation, to get to a workplace during the working day. It does not matter how far or near the workplace is in relation to your permanent home or lodgings.
The workplace can not be your home
If you are working inside your home during the working day, for example using a home office, it is seen that you do not need to buy food or drink, so you will not be able to claim for this expense.
Allowable subsistence rates
Subsistence expense rates are ‘scaled’ and determined by HMRC based on how long you are away from your home or temporary accommodation during the working day.
Traveling time to the workplace counts
Time spent travelling to and from your workplace, from your home or temporary accommodation, is included in away time.
The scaled rates
There are 4 subsistence rates available to cover the cost of food and drink consumed within a working day.
5 Hour rate
If you have been away from home/temporary accommodation for at least 5 hours during the working day, and in that time you have incurred a cost for a meal. A rate of up to £5 may be paid.
5 hours = £5
10 Hour rate
If you have been away from home/temporary accommodation for at least 10 hours and in that time you have incurred a cost for a meal/meals. A rate of up to £10 may be paid.
10 hours = £10
Early Starter
If you leave home/accommodation before 6am (and this is not your usual work pattern) and incur a cost for a breakfast, a rate of up to £5 may be paid. If you regularly start work early, for example for an early morning shift, you are not entitled to this rate.
Early start before 6am = £5
Late Finisher
This rate applies, if you complete a working day and finish your contracted hours, but remain at the workplace after 8pm. If you normally work a late shift pattern you are not entitled to this rate.
Late finish after 8pm = £15
To make a claim
Each week Sterling Solutions will send you a new expense claim form to complete. Section 3 refers to subsistence expenses. Simply tick the relevant claim based on your circumstances.
What’s more VAT receipts are not required to make a subsistence claims, making it easier for you!
Have a question? Contact our Customer Services on 0844 941 1111.
back to Subsistence Expenses
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Język Polski 
