As a self-employed person working in the theatre when travelling away from home for shows I am sometimes paid allowances for accommodation and food out of which I have to pay for these. Do such allowances have to be declared as income and then the expenditure claimed as expenses? If not, how should they be handled?
The allowances you are paid will need to be added in to your income from the self-employment and treated as part of your turnover. Whether you are then entitled to claim the cost of these as expenses will not always be allowed.
I have given you a couple of links from our Business Income Manual. The first is specifically regarding actors and entertainers and may answer some questions you have: