Autumn 2007 Newsletter Contents Borrowed clothes? You want it when? The daily grind Knock knock Computers@home Stick to the facts It's personal Expense claims Cash down Plant buying Hobson's choice A helping hand Education, education Up with the Joneses Bills bills bills Done to a crisp Tax association

Expense claims When employees put in their expense claims, the first person to scrutinise them is the boss. It's a business decision to pay or not to pay, to believe or not to believe. If your best sales agent might be a little imaginative, who cares? More money is coming in than going out. Of course, it doesn't stop with the boss. The taxman is also interested. If you pay something as "expenses" when it can't be justified, there should be tax and NIC. So you have to be hard-hearted - and reward the staff with something that everyone acknowledges is salary or bonus, not expenses. Making sure everything is backed up with documents has another benefit. If employees back up petrol or mileage claims with VAT invoices, and get hotels to put the business' name on their bills, the employer can claim back the VAT on these types of expense. If you pay 40p a mile to an employee who drives a mid-range car, 13p of that is treated as for petrol - so on a mileage allowance of £100, you can claim back £4.84. If you would like to discuss how to maximise the VAT recovery on employee expenses, we will be happy to talk to you.