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
5. “Software can’t be customised to fit our
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
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
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.