Claiming for Taxis.

[Clare@InTouch]

Here you go:

EIM31835 - Travel expenses: general: scale of expenditure
Sections 337 to 339 ITEPA 2003

The tests that apply to travel expenses relate to the nature of the expense and not to the amount. For that reason the cost of business travel is not usually a factor in deciding whether or not a deduction is due. For example, you should not refuse a deduction for first class rail travel, if that has been incurred, on the basis that the same journey could have been made more cheaply in standard class.

Where the travel arrangements are unusually lavish you should consider whether, on the facts of the case, the expenditure is genuinely attributable to business travel or is, for example, some sort of reward. However, you should not refuse a deduction for the actually incurred cost of a journey, hotel room or meal simply because a less expensive alternative is available.

Travel expenses: general: scale of expenditure

[Joeman]

As long as the journey counts as a qualifying journey, being wholly and exclusively for business purposes, then I don't see a problem. It's not up to HMRC to decide whether the money you've spent on a journey is excessive, just whether the purpose makes it allowable. You can fly first class or coach, both are allowable but one costs a lot more than the other.

There's something on their website about this, let me try to find it.....

Thanks, great summary - thats how i always understood the rules to work too.

Since im getting cabs to/from the train station to allow me to get the train to client site, i see no problem with proving the cab ride is "whooly and exclusivly" for my Ltd Company. -this is what i said to my mate in the pub (might have been a bit slurrrred!)

This is also the reason I like to keep detailed records of my hours/days worked on/off client site so if they ever ask a question about a random travel/susistence expense i have the documented proof as to where i was that day

[Joeman]

Here you go:

EIM31835 - Travel expenses: general: scale of expenditure
Sections 337 to 339 ITEPA 2003

The tests that apply to travel expenses relate to the nature of the expense and not to the amount. For that reason the cost of business travel is not usually a factor in deciding whether or not a deduction is due. For example, you should not refuse a deduction for first class rail travel, if that has been incurred, on the basis that the same journey could have been made more cheaply in standard class.

Where the travel arrangements are unusually lavish you should consider whether, on the facts of the case, the expenditure is genuinely attributable to business travel or is, for example, some sort of reward. However, you should not refuse a deduction for the actually incurred cost of a journey, hotel room or meal simply because a less expensive alternative is available.

Travel expenses: general: scale of expenditure

Nice one, thanks for the info... I would upgrade my train ticket to first class, but its always filled with fat ugly businessmen, so im better off crammed into Cattle Class with the ladies..

[Jeremiah@RHJAccountants]

Yes as long as it is for the business then you can claim the taxi fare it is a means of travel and keep the receipts too just incase you ever need to provide them.

[Joeman]

Freelance expenses: What business expenses can I claim? - Money advice from Freelance Advisor

Take a look at this above; am sure it's still current.

And before you start getting all defensive, in answer to your query, I have claimed (& still do) for taxis and never had a problem in doing so, either from HMRC or my accountants.

I highlighted your accountant b'cos it seemed sensible to me that rather than take the word of someone else 'in a pub' it might have been the right thing to take the view of your own accountant, rather than relying on hearsay. It is apparent though, that your self description is most fitting: you are indeed a "lazy fecker" in more than one way...

It is also clear, that being devoid of this basic business acumen, you're not really cut out for this contracting lark, are you?

Here we go again, personal insults from the jealous troll...

[northernladuk]

Here we go again, personal insults from the jealous troll...

He has got a point about speaking to your accountant first rather than letting us have to verify every bit of hearsay you hear in the pub though.....

[Joeman]

He has got a point about speaking to your accountant first rather than letting us have to verify every bit of hearsay you hear in the pub though.....

Well not really - how many times have i had to cut and paste the following quote:
have never had a problem putting them through the books as an expense.
Maybe its just me, but i thought it would be obvious from this sentence that my accountant was fine with Taxis???

[Joeman]

He has got a point about speaking to your accountant first rather than letting us have to verify every bit of hearsay you hear in the pub though.....

And furthermore, the post wasnt asking if it was 'Ok to claim taxis', as ive already been doing this without issue for some time - The post was supposed to be asking if anyone had any thoughts about my mate's comments that his accountant said "HMRC dont like taxis".

Asking my accountant (who already allows me to claim taxis as an expense), if he thinks its ok to claim taxis as an expense, seems like a bit of pointeless question as we all know what his response would be dont we...??

[northernladuk]

And furthermore, the post wasnt asking if it was 'Ok to claim taxis', as ive already been doing this without issue for some time - The post was supposed to be asking if anyone had any thoughts about my mate's comments that his accountant said "HMRC dont like taxis".

Asking my accountant (who already allows me to claim taxis as an expense), if he thinks its ok to claim taxis as an expense, seems like a bit of pointeless question as we all know what his response would be dont we...??

You asked for our thoughts and we gave you them. If you don't like them don't ask for them.

[ASB]

have never had a problem putting them through the books as an expense.

[picky]
I never had a problem claiming anything I fancied as an expense. The investigation was a different matter

The taxis are not a problem, however one area that HMRC do have possible concerns over is establishing that the journey actually took place. If you have a receipt, no worries, HMRC can bleat as much as they want that you took a taxi rather than bus/tube/hitchhiking, but for those journeys (if any) without receipt you will need to satisfy it happened.