Claiming expenses incurred abroad finding client

**Contreras** · 10 June 2015, 05:21

Originally posted by buddy99 View Post

Hi,

I went to the US from the UK for a month earlier this year to interview with companies and was offered a job, where I would work as a contractor from the UK(after a year or so I am hoping to be taken on as a full time employee and move to the US). I returned to the UK, set up an Ltd. and now work for my US client from here.

My question is this: Am I allowed to claim as expenses my flight to US, car hire, petrol and hotel expenses etc. which I incurred solely while securing this work for my (then unformed) company? Is this a simple yes or no, or a more complicated "talk to accountant"?

I appreciate an accountant is a good idea regardless but I just wanted people's opinion here first.

I believe this a "simple yes" but you should still "talk to accountant" and the search term you are looking for is "company pre-incorporation expenses".

Ensure that you have kept a detailed record of all expenses along with receipts, including VAT receipts where applicable. Speak to a few accountants if you can.

**mudskipper** · 10 June 2015, 06:24

The trip has to be wholly and exclusively for business purposes.

If it was, then yes.

If you were on holiday for a month, and had a couple of interviews when you were there, then no.

If, for example, you had a partner with you, or had a couple of interviews in week one then travelled for 3 weeks, I think you'd be hard pushed to justify it.

**TheCyclingProgrammer** · 10 June 2015, 09:04

If you literally went there for interviews and came back then IMO it sounds like pre-incorporation expenses however travel is normally an employee expense, not a company expense. Not sure if any employee can claim expenses from before they were actually an employee/director so as above is definitely check with your accountant. My suspicion is you still can but worth double checking. It will probably need to be reported on your first P11D too.

Re: above as this would be an employee/director expense the actually test is wholly, exclusively and necessarily for business purposes.

**northernladuk** · 10 June 2015, 09:20

You went by yourself?

**BrilloPad** · 10 June 2015, 09:33

When I first contracted (1988) a friend said his accountants got all their contractors to pay themselves £10k expenses as a finders fee for the company! HMRC rejected 50% of these.

Seems to me if you have all the invoices then it is different. Though I do wonder if there is an issue as expenses occurred before company was formed?

**TheFaQQer** · 10 June 2015, 09:42

No.

You weren't an employee or an officer of the company, so you can't have incurred them on behalf of the company.

**Contreras** · 10 June 2015, 10:37

Originally posted by TheFaQQer View Post

No.

You weren't an employee or an officer of the company, so you can't have incurred them on behalf of the company.

Not sure where you're coming from there. These are "pre-incorporation" expenses so by definition the company did not exist at the time. In any case, there is no requirement to be an employee/officer in order to claim expenses incurred on behalf of the company.

Agree with the points re. with it needing to be wholly and necessary although I was taking the OP at face value on this.

**northernladuk** · 10 June 2015, 10:58

I think the devil will be in the details here. IMO the OP will come under some very heavy scrutiny here. If he's there for a month and only attend a couple of interviews that weren't pre-planned with the rest of the time spent checking out the area, accommodation and just enjoying the time he's going to cause himself a lot of hassle. If he attended 10+ interviews all pre planned and it was easier to be there for the month than fly back and forth it might fly.

Turning up to scope the place and have a look around doesn't sound very business orientated to me. Would sound more like a lifestyle choice with work only being a small element of it.

**Pondlife** · 10 June 2015, 11:07

What reason did the OP tell US immigration the visit was for?

I doubt touting for work fits the allowable criteria for VWP.

Claiming expenses incurred abroad finding client