HMRC Self-Employment Travel expenses

100eyes

Hello everyone,

I have recently registered as self-employed and have yet to do my first tax return. I have a stock photography business and I'm unsure about the rules on claiming expenses. Photography is my side business and I am also employed full time. My stock photography is not always assignment based it blends in with my everyday life and I could be taking pictures anytime and anywhere. I would like some advice on the two following situations.

I have a travel card that I buy to commute to my full time job, but that gets used for travel to take photos as well, how would I record this and how much of the travel card would I claim?

Another scenario is when I go on holiday - during my holidays I take photos pretty much all the time for business purposes - can I claim expenses such as flights, accommodation in full?

I would greatly appreciate your advice
Many thanks

Pennywise

You can only claim costs which are "wholly and exclusively" for business purposes. That usually means "dual use" costs, i.e. mixed between private and business can't be claimed for. But, HMRC do allow you to claim a proportion of "dual use" costs to the extent of the business use.

So, for, say, your home telephone bill, if you use it for say a third of the usage, you're allowed to claim a third of the costs.

When it comes to travel, holidays, etc., it's very difficult for you to evaluate and prove what the business use it if the prime purpose of the travel is for private use. Unless your prime motivation for going on holiday was to take photos, you spent most of your time taking photos, etc., then any claim for the dual costs is unlikely to be successful, so I'd say that discounts flights, hotels, etc especially if you go with your family. However, whilst on holiday, if you take a specific journey for a specific photo opportunity (on your own), then your travel fares, subsistence etc during that trip could be more easily justified. At the end of the day, it depends on the detail and your specific circumstances.

100eyes

Thank very much for your response.

So in the case of a travel card I could clam 2/3 of the cost?

Well that's just the thing, I do travel with others most of the time, however I do spend every day of the holiday taking pictures, I could say that my primary motivation to travel these days is to take photos for my business. I do have the pictures as evidence, they are all timestamped, so I'm wondering if that would be a case to claim?

Like you say, it's tricky to evaluate, because in my case it's quite difficult separate work from leisure. I have perviously sought some advice on this and been told that if you can carry on your business without incurring an expense, it may be allowable in whole or part. If you can't, it is, in whole. So basically I would not be able to sell pictures from Spain without paying to travel to Spain if that makes sense? Any thoughts on this?

Savvy_Sue

Personally, and I'm no expert, claiming 2/3 of the cost of your travel card seems very cheeky.

You're employed full-time. How many hours pw do you spend on the photography? Pro rata might be reasonable, but I say MIGHT.

As for the holiday expenses, I'd re-read what Pennywise said. I can't see there's much room to claim there. Unless you're saying you'd never go on holiday again if it weren't for the photo business ...

p00hsticks

100eyes wrote: »

So in the case of a travel card I could clam 2/3 of the cost?

How do you arrive at that ? The portion used for your commute to your full time job won't be deductible, and that surely covers the majority of the cost ?

100eyes

The amount varies but would say anything between 8-15 hours a week

Well, of course I would be still going on holidays, but then I wouldn't be taking stock pictures during my trip and claiming it as an expanse.

KatrinaWaves

100eyes wrote: »

The amount varies but would say anything between 8-15 hours a week

Well, of course I would be still going on holidays, but then I wouldn't be taking stock pictures during my trip and claiming it as an expanse.

You need a good accountant. I dont see anyone writing off holidays cos they might take a couple photos whilst they are there, nor 2/3 of a work travel card!

motorguy

I think it would be incredibly optimistic to think HMRC would allow you to expense part of a holiday cost on the basis you took a few snaps when you were there.

100eyes

Ok, I think it's probably best for me to ask someone who is a photographer and works in a similar field.

My work does not mean taking a few accidental snaps whilst I'm on holiday. If carrying a 1kg camera around your neck for 12 hour days along with some other equipment, waiting around to get the best shot with the best light sounds like leisure then you have a strange perception of leisure. You are clearly unfamiliar with what professional photography entails.

motorguy

100eyes wrote: »

Ok, I think it's probably best for me to ask someone who is a photographer and works in a similar field.

My work does not mean taking a few accidental snaps whilst I'm on holiday. If carrying a 1kg camera around your neck for 12 hour days along with some other equipment, waiting around to get the best shot with the best light sounds like leisure then you have a strange perception of leisure. You are clearly unfamiliar with what professional photography entails.

You're either - like you told us in the first post - going on holiday or you're going on business.

Frankly theres no moral high ground to be taken here.

Speak to an accountant, however the answer will be the same - you cant claim your holiday.

On that note, i'm an IT Contractor, perhaps on my cruise in March i could look for IT contract work in every port we'll be stopping in - perhaps build relationships in bars and restaurants while i'm there (to further my business of course)?

You not getting the answer you want to hear, doesnt make us wrong by the way. - and its not us you'd have to convince, its HMRC and they're not reknowned for interpretation in shades of grey (particularly when it involves them not getting tax due)

theoretica

100eyes wrote: »

Another scenario is when I go on holiday - during my holidays I take photos pretty much all the time for business purposes - can I claim expenses such as flights, accommodation in full?

It is significant to me that the word you first used for these trips is 'holiday'. You can't claim for holidays. When I go abroad for work trips they are work trips and I wouldn't consider calling them holidays, or going with friends and family.


Another test that I have read about HMRC applying is profitability - if you deduct all these expenses and it shows you aren't actually making a decent profit then that isn't much of a business is it - it's a hobby. If you are making a good profit and wage after these deductions it is a much more realistic business.