Claiming expenses incurred abroad finding client

[buddy99]

Partner? Holiday? Not wholly and exclusively. Can't claim.

If I was HMIT I wouldn't be over the moon about 4 interviews in a month either. I'd also question the costs incurred over possible returns.

You've made it absolutely clear you are just angling to go full time over there so this is purely a lifestyle choice. It looks like it is going well so just leave the company out of it. You are not running a business and claiming costs of doing business, you are trying to get a freebie from it as you work on plan B. You are only getting 20% of it back anyway so just swallow it and get on with your life plan.

Or do you know all this so are just wanting us to say yes so you can pacify your guilty conscience.

Well I cannot pretend I am not looking to see if there is an advantage to the situation I am in that allows me to legally pay less tax.

I understand the period where my partner and I spent some time together was obviously not spent looking for work and is not claimable since I had secured a job but I do not understand how that poisons the first 4 weeks where I was solely and exclusively looking for work. Had I sat on my hands for the last 10 days, it would be OK, but because I filled that empty space with some unplanned travel, it then disqualifies the whole trip? Equally had I flown home and then immediately back, then the first 4 weeks would be OK? I can understand perhaps why it may disqualify the flights and car hire as they covered both periods but the accommodation for the first 4 weeks was solely and exclusively for finding work and I was on my own. I am confident that I could prove beyond doubt with phone, email and travel records that the purpose of my trip for the 4 weeks was for work and there was no "holiday" element to it. I think I could prove that the travel at the end was incidental and had no basis in the purpose of the trip.

It was 4 companies but more like 7 interviews in different cities with days of preparation and travel required for each one. I did not stay in touristy areas or cities for the most part. Again if I explained the whole schedule of what I did, it would be clear that it was not a holiday in any way except for perhaps the last 10 days.

[Contreras]

Well I cannot pretend I am not looking to see if there is an advantage to the situation I am in that allows me to legally pay less tax.

I understand the period where my partner and I spent some time together was obviously not spent looking for work and is not claimable since I had secured a job but I do not understand how that poisons the first 4 weeks where I was solely and exclusively looking for work. Had I sat on my hands for the last 10 days, it would be OK, but because I filled that empty space with some unplanned travel, it then disqualifies the whole trip? Equally had I flown home and then immediately back, then the first 4 weeks would be OK? I can understand perhaps why it may disqualify the flights and car hire as they covered both periods but the accommodation for the first 4 weeks was solely and exclusively for finding work and I was on my own. I am confident that I could prove beyond doubt with phone, email and travel records that the purpose of my trip for the 4 weeks was for work and there was no "holiday" element to it. I think I could prove that the travel at the end was incidental and had no basis in the purpose of the trip.

It was 4 companies but more like 7 interviews in different cities with days of preparation and travel required for each one. I did not stay in touristy areas or cities for the most part. Again if I explained the whole schedule of what I did, it would be clear that it was not a holiday in any way except for perhaps the last 10 days.

In that case the answer to your original question is "it depends".

It depends on a) your appetite for risk and b) who you ask.

Your rationale might seem reasonable to you but don't expect an HMRC inspector to see it that way. It would need the support of your accountant to present convincing arguments and if that fails you could be left choosing between penalties or going to tribunal.

Given that (it seems) you haven't yet engaged an accountant, a good starting point would be to speak to a few and take it from there. It may be you decide it's too much hassle to save the 20% on start-up costs when there's other important things to be getting a handle on - VAT, contract legal jurisdictions, insurance - to name a few.

If you decide to claim (and I'm not saying you can/should) then IMHO be very conservative. For example don't claim for the flights and limit the subsistence strictly to to what can be evidenced as wholly necessary.

[TheFaQQer]

I think I could prove that the travel at the end was incidental and had no basis in the purpose of the trip.

Claim it, then

[TheCoconutDog]

Have a look at HMRC Booklet 490. https://www.gov.uk/government/upload...321897/490.pdf

I don't fancy your chances though if you get an inspection.

[TheFaQQer]

As I implied earlier, isn't the easiest line for HMRC to take "you were on a tourist visa, so this can't be a business expense"?

How will you defend that question?

[TheCoconutDog]

How will you defend that question?

Sorry m'laud, but shy bairns get nowt, so go easy on me

[TheFaQQer]

Sorry m'laud, but shy bairns get nowt, so go easy on me

Is lubricant claimable?

[jamesbrown]

As I implied earlier, isn't the easiest line for HMRC to take "you were on a tourist visa, so this can't be a business expense"?

How will you defend that question?

I can't see where the OP mentioned this, but the VWP isn't a "tourist visa"; as the name implies, it isn't a visa at all, and it allows for business, with restrictions.

Where the OP is likely to come unstuck is w/r to the substantial time spent on holiday, which is clearly not incidental. If this were principally a business trip, the OP would've made every effort to compress their business into a reasonable period and, once concluded, arranged their flight to return earlier (having booked a flexible flight, as needed). That said, unless the OP wants to take an aggressive approach, only a small fraction of the costs may be allowable.

[buddy99]

In that case the answer to your original question is "it depends".

It depends on a) your appetite for risk and b) who you ask.

Your rationale might seem reasonable to you but don't expect an HMRC inspector to see it that way. It would need the support of your accountant to present convincing arguments and if that fails you could be left choosing between penalties or going to tribunal.

Given that (it seems) you haven't yet engaged an accountant, a good starting point would be to speak to a few and take it from there. It may be you decide it's too much hassle to save the 20% on start-up costs when there's other important things to be getting a handle on - VAT, contract legal jurisdictions, insurance - to name a few.

If you decide to claim (and I'm not saying you can/should) then IMHO be very conservative. For example don't claim for the flights and limit the subsistence strictly to to what can be evidenced as wholly necessary.

OK I will be employing an accountant but I wanted to get an idea beforehand. It sounds like there is a chance it could be allowed. I will follow the accountant's advice. Out of interest what is the "risk" here. I am assuming it is not simply having the expenses disallowed and having to pay the tax+interest? Is there a risk of being prosecuted for fraud on something like this(to be clear I have not lied about anything in this thread). If I am confident I can prove this trip is what I claim, then is the worst case scenario is they deny the expenses and I have to repay them with interest?

To answer the visa question, I was in the US under the Visa Waiver Program which allows visa free access for 90 days for both business and/or tourism. I did not break any US laws interviewing for jobs.

[TheCoconutDog]

Claiming expenses incurred abroad finding client

Risk is tax + interest + 100% penalty of the tax. If you proffer a false document then you're into the areas of fraud.

Sounds to me that to have any hope of claiming this, some falsification is going to be required. E.g. you didn't set up your company and then go in an entrepreneurial sales trip for contracts. You went over for some permie interviews and are now trying to rewrite history. Good luck with that.