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Posted Thu, 21 Mar 2024 11:27:22 GMT by J13 Williams
I am a director of a limited company and I have a contract to provide services in Iraq. Whilst I am overseas I will use the HMRC benchmark scale rates (Expenses rates for the assessments outside the UK) to cover my expenses? Are these expenses (Accommodation, food, security and transport etc) reported within my ltd company accounts? Do I require receipts for all the expenses? The reason I ask is because some expenses within Iraq will be difficult to obtain a legitimate receipt. HMRC have stated that the agreed benchmarked scale rates don’t need to be supported with receipts.
Posted Tue, 26 Mar 2024 16:44:33 GMT by HMRC Admin 19

From the information supplied it would appear that you are both the employer and the employee. An employer should be asking for receipts in relation to expenses and if this is the relationship you would be acting under then, yes, as the 'employer' is reimbursing the expenses, these would need to be reported within the company accounts. You can see guidance here: 

Expenses and benefits: cash sum payments to employees

As long as your employee has actually spent the scale rate payment on business expenses, you will not need to check every single receipt, it is fine to just check a sample.

You can see further guidance here:  

EIM05210 - Employment income: scale rate expenses payments: subsistence expenses: sampling guidance

If you have further specific questions relating to this enquiry you should write to the following address, quoting the PAYE reference number:

PT Operations North East England,
HM Revenue and Customs,

Thank you. 

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