Expenses Ltd company director can claim while in isolation

MattMattMattUK

Jeremy535897 said:

Yes, if you read the link in my earlier post, that explains the point clearly:

"An employee has to travel to New York on business for two weeks. While she is there she has a free weekend and spends it taking a break in Boston. The cost of her flight to New York and any other necessary travelling expenses are deductible. They have been necessarily incurred in travelling to a temporary workplace. The fact that the break in Boston means that the travelling expenses have not been incurred wholly and exclusively for business does not matter.

The costs of the break in Boston, such as travelling to Boston from New York and the cost of staying in Boston, are not deductible. These expenses are not attributable to attendance at the temporary workplace."

I used to work for someone who would fly out to Tenerife six times a year, for two weeks at a time, he employed a "consultant" out there for a few hours a month, so he and his partner (also on the payroll) could fly out there for "meetings", the whole trip went down as a business expense, every time. Whilst my ex employer's case was (at least to me) obvious fraud, from what I understand there is a reasonably wide grey area between acceptable and unacceptable, with no absolute dividing line. 

Grumpy_chap

MattMattMattUK said:

I have known (and indeed used to work for someone) who took every holiday as a business expense because they were all "team building" as his partner was on the payroll

That very probably is not allowed.  It might be something you can "get away" with, but if the HMRC ever come looking for anything, then find this type of behavioir, the scrutiny will be very thorough afterwards.

MattMattMattUK

Grumpy_chap said:

MattMattMattUK said:

I have known (and indeed used to work for someone) who took every holiday as a business expense because they were all "team building" as his partner was on the payroll

That very probably is not allowed.  It might be something you can "get away" with, but if the HMRC ever come looking for anything, then find this type of behavioir, the scrutiny will be very thorough afterwards.

That ex employer got away with a hell of a lot and never faced any consequences despite being reported by numerous people (including myself) with copies of evidence, HMRC never acted. I find it frustrating as someone who has for a few years run my own business and do so entirely legitimately, paying all taxes due and being thoroughly above board, that others can get away blatant breaches (and even illegal behaviour) and HMRC refuse to act, even when presented with the evidence. 

Jeremy535897

MattMattMattUK said:

Jeremy535897 said:

MattMattMattUK said:

jtsteven said:

Hi,
I have just returned from working in the Netherlands and am now isolating for 10 days at home, my question is, apart from claiming for my 2nd and 8th day PCR tests, is there anything else I claim for?
Thanks,
Jason

Was your travel entirely for work? Only if the travel was for work can you claim the costs of the PCR tests. 

This is incorrect. See https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31811
Although the PCR tests are not travel in themselves, as the travel could not have happened without the PCR tests, if the travel was necessary, it qualifies and so do the PCR tests. See
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31965

The reason I asked (and I might have phrased it badly) is that I was curious, was the travel for work, or were they working whilst they had travelled. Eg. I can work from anywhere in the world with a good broadband connection, so I could be in the Netherlands for other reasons, but still working.

I know travel is technically only supposed to be for business/essential family reasons, so if they were travelling for essential family reasons, but working whilst out there, I do not believe that they would be eligible to reclaim the cost. Although of course I have known (and indeed used to work for someone) who took every holiday as a business expense because they were all "team building" as his partner was on the payroll, obviously there is a wide range of behaviour in between that and working whilst away. 

Perhaps it was the "is there anything else I can claim for?" part that triggered my perception of it not being business related, eg most directors would know that if it was a business trip then it is claimable, if it is not business and they just did some work whilst out there that it is not. 

The point is rather that the travel has to be necessary. Travelling anywhere when all the work related activity is remote cannot be necessary, even if all you end up doing is work (like a holiday when an emergency comes up so you are glued to the screen the whole time). However, if you absolutely have to be in New York for a meeting on one day due to employment, tickets to and from New York will be deductible, even if you also take a month's holiday after the meeting.

Pennywise

MattMattMattUK said:

Grumpy_chap said:

MattMattMattUK said:

I have known (and indeed used to work for someone) who took every holiday as a business expense because they were all "team building" as his partner was on the payroll

That very probably is not allowed.  It might be something you can "get away" with, but if the HMRC ever come looking for anything, then find this type of behavioir, the scrutiny will be very thorough afterwards.

That ex employer got away with a hell of a lot and never faced any consequences despite being reported by numerous people (including myself) with copies of evidence, HMRC never acted. I find it frustrating as someone who has for a few years run my own business and do so entirely legitimately, paying all taxes due and being thoroughly above board, that others can get away blatant breaches (and even illegal behaviour) and HMRC refuse to act, even when presented with the evidence. 

HMRC just use a random/scattergun approach a lot of the time these days.  As an accountant, I am legally required to make reports of suspected tax evasion and other financial offences, which I do, but most are ignored, despite them being provided with clear evidence etc.  Then, for other clients, HMRC start formal enquiries for trivial matters and ask pretty stupid questions.
I think a lot of people "get away with" things like claiming for holidays simply because HMRC don't ask the right questions and don't really know what to look for.
It never used to be that way.  I started in the 80s when there were experienced/local tax inspectors who did the job properly.  Such as shame it was all dismantled and turned into call centre operations.