Petty cash and accounts

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hippy-chick

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I was chatting to a friend who was handing some bits and pieces over to me as she has closed her business and she had put a petty cash bookin the box.
she said that you can automatically claim £30 petty cash back on your accounts every month.

thats great, I thought, but why would you need petty cash slips for it? surely if you have a receipt that would go onto your outgoing sheet anyhow.

Anyone shed some light on this for me please?

I had also heard that you can claim a meal allowance back daily too, approx £5. Is this true?
 
Morning Ann!

Now it's a few years since I worked in accounts this is my take on it.

A Petty Cash system is used for the purpose of all staff members to purchase small items without having to request purchase orders or bother senior staff that are 'bank account signatories'. It is an just alterative way for items to be purchased and is not 'claimable'. As you rightfully say all receipts & expenses would still be logged into the Petty Cash book then transferred into your main accounting system.

As for the meal alowance it is my understanding that you can claim for subsistence whilst away on business (e,g, at a trade show) or if you were having a business lunch (e.g. entertaining a rep or potential business partner). You cannot claim for daily meals at your regular place of work just in the same way that you can't claim petrol to travel to your regular place of work but you can if going to the wholesalers.

AS I said, it's been over 5 years since I worked in accounts so things may have changed so if this thread produces some different replies it may be worth calling the Inland Revenue.

Have a nice day!

Emma x
 

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