Here at MyExpensesOnline we love expenses! However, we know there’s a lot of misunderstanding around allowances and processes, so to help clear up any misconceptions, MyExpensesOnline have created this guide.
1. “You must keep all paper receipts for HMRC”
FALSE – HMRC just need to see the receipt (whether this is the actual hard copy, or a photograph of it) – One of the many advantages of a cloud based expense system.
2. “Automating our expenses is a waste of time – employees wouldn’t use it!”
Partly FALSE –Employees are always looking for quicker and easier ways to do the jobs they hate! Making claims for expenses is one of those jobs which takes up time and is often left till the last minute. MyExpensesOnline will allow employees to submit those expenses in a matter of minutes. We know that adopting new systems can be tricky, but with the right support and training, the transition can be very smooth.
3. “Mileage isn’t a large business expenses – it’s not worth tracking!”
FALSE – Mileage is one of the most common business expenses. It is also the one with the most room for error (under/over estimating). Cracking down on the mileage claims could mean huge savings for your business.
4. “We aren’t a big enough business to automate our expenses”
TRUE/FALSE – Saving money and preventing expenses fraud is vital for smaller businesses, where every penny counts. If you have more than 5 people claiming expenses, there are savings to be made by investing in new software. Less than 5 employees is probably more manageable without.
5. “Software can’t be customised to fit our process”
FALSE – The team at MyExpensesOnline are happy to discuss any requirements you have for the MEO system, allowing integration with accounting software etc.
6. “I can claim expenses for the journey between home and work”
FALSE – HMRC would consider this to be your normal commuting and is not a business expense. If the journey is outside of your normal routine, or to a location which is not your normal workplace, then you can claim this.
7. “My lunch is a business expense”
TRUE/FALSE – Lunch is only a business expense if it is part of entertaining a client, or it is outside of your normal working routine.
8. “Employee parties are tax deductible”
TRUE – An annual company event (whether this is a Christmas party, or summer BBQ) is only exempt from tax if the following conditions are met; it is an annual event, it is open to all employees, and the cost per head is not more than £150.
9. “I use my mobile phone for business, so it is a reclaimable expense”
PARTLY FALSE – You are only allowed to reclaim the cost of purchasing a phone, and monthly line rental, if this is done so under the name of the business. Line rental cannot be claimed, but a claim can be made for part of the bill if the calls associated with the business can be highlighted and the cost itemised. PAYG phones do not provide an itemised bill, so no part of the bill can be claimed.
10. “I won’t be able to claim actual miles travelled with an automated system – the system will just calculate the shortest route”
FALSE – MyExpensesOnline uses Mapquest to work out the miles travelled between 2 points, however if for any reason, the journey taken was different (traffic, roadworks etc), then there is the ability to adjust and leave notes providing a reason for extra mileage.