Claiming costs of holiday cancellation?

[baxybaxy]

Hi all,

I suspect this may be a bit optimistic, but I am wondering if anyone has successfully argued that holiday cancellation costs are a legitimate running cost of the business?

The background is that we had to cancel a rental property in France last summer, at a cost of around £3k.

This was because a project needed to be completed sooner than anticipated.

My ultimate client put enormous pressure on me personally to support the project, and there was a significant bonus payment for completing the work, which would have been at risk otherwise. The company I was contracting through wanted me to do the work, and even proposed to 'make good' the amount, but I have not accepted that as I am worried it would affect my position re. IR35 - also, the £3k was paid out of taxed income of course, so the amount they would have needed to pay would have been more.

Any ideas gratefully received.

[BolshieBastard]

Stop trying to take the piss. You know its not a 'wholly and exclusive' business expense! Ergo its not claimable.

[Gonzo]

Why didn't you put the whole trip through on expenses in the first place? You can put it through the books as a "business development trip".

You need to be careful as HMRC might try to argue that taking the wife and kids along should be assessed as a "benefit in kind".

You can avoid this so long as they do something that is of benefit to the trip while they are there. So you just need to get your wife and kids to act as translators for you, and bob's your uncle



hth

[BrilloPad]

Have you asked your accountant? Some will do it ans some wont : if it gets through them you will be unlucky to be caught by HMRC. But if they catch you they will go through your books with a fine tooth comb.

[TheFaQQer]

Hi all,

I suspect this may be a bit optimistic, but I am wondering if anyone has successfully argued that holiday cancellation costs are a legitimate running cost of the business?

The background is that we had to cancel a rental property in France last summer, at a cost of around £3k.

This was because a project needed to be completed sooner than anticipated.

My ultimate client put enormous pressure on me personally to support the project, and there was a significant bonus payment for completing the work, which would have been at risk otherwise. The company I was contracting through wanted me to do the work, and even proposed to 'make good' the amount, but I have not accepted that as I am worried it would affect my position re. IR35 - also, the £3k was paid out of taxed income of course, so the amount they would have needed to pay would have been more.

Any ideas gratefully received.

No, it's not a business expense.

But why would you consider the client reimbursing your expenses incurred as an IR35 pointer? At the very least, your company should claim the £3k from them, even if you don't reimburse the employee with the money. To turn down £3k of free income to the business is a tad foolish.