Expenses paid in wages

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  • #31643
    liffe
    Participant

    We have a customer who receives a set amount in his wage which is intended to pay for food etc whilst he is away working – he is a coach driver. If he does not actually incur any expenses eg takes a packed lunch!, do we include this in his gross pay?
    If he does incur costs, do we have to deduct it from the gross?

    #88489
    Kevin D
    Participant

    HBR 35(2)(b) uses the work “incurred”. On that basis, if expenses are not [u:48fc41be16]actually[/u:48fc41be16] incurred, monies paid counts as earnings and should not be disregarded.

    In my view, money spent to purchase the ingredients for a packed lunch is also not allowable as an expense. Any number of people take lunch in that way – approx 3,000,000 per day with about the same number again purchasing pre-packed sandwiches from supermarkets etc.

    In the circumstances described, I can’t see how a self-made packed lunch is an expense incurred in the performance of the duties of the employment.

    However, it becomes a bit blurry if he is away overnight (due to his work) and having to pay for evening food. That may well be allowable.

    #88490
    Anonymous
    Guest

    He would have to eat regardless of whether he was at work or sat at home in front of the TV! 😆

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