Expenses you are claiming

[boredsenseless]

surely if a 7 day train ticket is cheaper than 5 x 1 day then they can't complain about that? It's in your companies interests to go for the cheaper option.

Oh dear you assumed that Common Sense might prevail in the machinery of allowable expenses!

[Denny]

surely if a 7 day train ticket is cheaper than 5 x 1 day then they can't complain about that? It's in your companies interests to go for the cheaper option.

No they would rather you paid £40 return to get to the business site and then claim it as tax deductable than allow you to pay £20 that permits you to use the same ticket to roam across town free of charge to the cinema after work.

Sad, but true! Since when did the Whitehall pen pushers in grey suits have any common sense?

[Lucifer Box]

Denny is correct. Season or period tickets are not kindly viewed by HMRC as legitimate expenses and stand a chance of being reclassified as a benefit in kind come the next inspection.

Take the hit and buy daily tickets to be on the safe side.

[malvolio]

Unless, like me, you're the sort of sad plonker that commutes an infeasible distance (Bath to the City in my case, 3-4 days a week) which is defensible as a bloody necessity and not a BIK.

[Lucifer Box]

Absolutely right, Malvolio, that is a different kettle of fish altogether.

Anyways, to whoever originally asked the question, claiming a one week/month/whatever London travelcard when you live in London anyway ain't going to stand up to scrutiny and will almost certainly be ruled to be a BIK with tax to pay. Buy a daily return and keep the receipt, then there's no argument.

[Denny]

Absolutely right, Malvolio, that is a different kettle of fish altogether.

Anyways, to whoever originally asked the question, claiming a one week/month/whatever London travelcard when you live in London anyway ain't going to stand up to scrutiny and will almost certainly be ruled to be a BIK with tax to pay. Buy a daily return and keep the receipt, then there's no argument.

Or a good tax avoidance measure could be to bicycle to work and pay some poor sod half price for their travel ticket at the end of a working day.

[Lucifer Box]

Or a good tax avoidance measure could be to bicycle to work and pay some poor sod half price for their travel ticket at the end of a working day.

You can claim a mileage allowance if you cycle to work (20p/mile).

[GeorgeGregan]

Denny is correct. Season or period tickets are not kindly viewed by HMRC as legitimate expenses and stand a chance of being reclassified as a benefit in kind come the next inspection.

Take the hit and buy daily tickets to be on the safe side.

Hmm.. I've been claiming 7 day london travelcards for ages and my (normally good) accountants haven't told me not to. What happens if it does get ruled as a BIK? Do you just pay tax on it or are they likely to add a fine as well?

[Lucifer Box]

Hmm.. I've been claiming 7 day london travelcards for ages and my (normally good) accountants haven't told me not to. What happens if it does get ruled as a BIK? Do you just pay tax on it or are they likely to add a fine as well?

Most likely is a bill for tax plus interest. Fines are normally reserved for deliberate fraud (e.g. claiming expenses without receipt). Of course, you may never get investigated and no one will be any the wiser. Don't lose any sleep over it unless we're talking serious wonga - just start documenting business travel fully and correctly in future.

[boredsenseless]

Hmm.. I've been claiming 7 day london travelcards for ages and my (normally good) accountants haven't told me not to. What happens if it does get ruled as a BIK? Do you just pay tax on it or are they likely to add a fine as well?

The biggest issue here is do you use it for your own private travel? If you do then you have three options

1) Keep quiet and hope
2) Document all journeys and claim the percentage used for work not the full face value
3) Buy a second ticket for private travel (but then you wouldn't need the work one would you?)