Sunday, 17th December 2017
FINANCE & INVESTMENT Article
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This Month's Magazine
Changes in the tax legislation for the self employed.

Changes in the tax legislation for the self employed.

The new law for autonomos that enters into effect in January has brought about many long-waited-for changes. One of these is the possibility to offset meals and accommodation costs.

 

This type of allowance was only acknowledged for employees but now, from January, the self-employed will be able to include in their accounts invoices for meals and accommodations up to a legal limit subject to some conditions.

Conditions
The conditions are meant to prevent the fraudulent use of this allowance.

  1. The expense must be linked to the business activity. In this scenario, if the self-employed person needs to spend the night away he would need to provide reasons upon request of how the trip is related to his work in order to be able to offset the hotel´s invoice.
  2. The expense must be incurred in a working day.
  3. The payment must have been done by electronic means. (credit or debit card, wire transfer, etc…). This way will allow the authority to track the payment if necessary. While expenses paid cash cannot be offset.
  4. Expenses must take places only in restaurants and professional accommodations (not shops, supermarkets)
  5. As always, you need to request a valid invoice. Remember: tickets and simplified invoices are not valid. Limits

The daily limits for deductions are:

Any invoice for a meal exceeding the designated amount would be valid, but only allowed to the prescribed limit.


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Final recommendation
It is strongly recommended to attach to the invoice any documented proof to support the claim. In some cases the Tax Agency has requested accepted quotations, signed contracts or even emails that confirmed the business meeting.

If you want to know more, you are invited to meet us and attend to a free 20 min talk “Changes in the new law for autonomos”. Simply book your visit on http://www.limitconsulting.com/talksworkshops/

 



Limit Consulting
Business Legal, Accounts & Tax Consultants, Calle Miguel Delibes, 9, 29692
+34 951 087 937
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Limit Consulting

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