WIRE OPENAn archive editionSEARCHARCHIVERSS
EST. 2000
UKTECH
THE IT-CONTRACTING & TAX RECORD
LATEST

Do I misunderstand a P11D dispensation?

Do I misunderstand a P11D dispensation? I have formed a new small company that is about to start trading. I will spend 5 nights away from home.

To stay in hotels is going to cost a lot of money, but I believe I can claim for the receipted amounts of board and subsistence against my company's tax bill. It would be about £100 per day. I'll have to keep a lot of receipts.

I have seen the Inland Revenue Form P11DX which I can fill in and apply for a dispensation which would save having to fill in a P11D. Sounds good.

Except that I believe that I **still** have to prove that I'm spending £100 per day by keeping receipts.

So if I move to a cheaper hotel and spend say £60 per night I cannot claim the £100 dispensation. This seems at odds with what an intermediary company told me when they were persuading me to work for them under their umbrella company. They said I could spend £25 a day but still claim £101 through them with no receipts.

It seems very confusing and I see no benefit now for getting a dispensation.

Thanks

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Steve Shakeshaft

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