Team meals are not eligible for tax relief on the whole value, so it's important to understand the rules before you pay for anything on behalf of your client.
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We thought it would be useful to share some information about reimbursed expenses, specifically relating to team meals. |
In the weeks leading up to Christmas it's likely that some contractors will be asked by end clients to book meals for their teams to include other contractors or even internal team members. In some cases, the contractor may be expected to pay for this up front and claim it back later.
Unfortunately, such expenses can't be paid back to you tax free. If such an expense is incurred, you will pay tax and NIC's on the expense reimbursement, so in effect lose out by paying for these types of expenses yourself.
These types of expenses are treated in line with HMRC 'client entertainment' guidance and would be taxed alongside your normal payment with NASA Umbrella.
This type of query often only arises after the expense has already been incurred, so we wanted to give as much information as possible in advance. We will be able to process your part of the claim (meal and up to two drinks) but anything else would be excluded.
Wherever possible the end client should pay for any costs directly, and claims processed via their own expense policy.
If you expect to incur these types of costs for one off expenses, then you can claim these via the reimbursed expense form linked here.
If you have any questions around this, please email the team below and they will make contact: