Can the sole director of his own company be paid £5 per night when away on business without producing receipts to cover expenses incurred?
The £5 per night limit is for personal incidental expenses such as laundry costs and telephone calls, which are rarely supported by receipts. As long as the company does not pay more than £5 per night on average per business trip, the full amount paid will be tax free. However, if the company pays in excess of £5 per night, the total is taxable. Any amount paid or reimbursed by the company for actual personal expenses, such as laundry bills, must be deducted from the £5 nightly limit.