stek's daft question of the day.....

[northernladuk]

A large consultancy firm could pay for an employee's early flight and pay him a bonus to cut a holiday short for work, presumably this would be a legitimate expense for them.

I'm guessing it would not be possible for a director of a contractor style ltd, but not sure exactly on what basis it differs from the large consultancy and their employee.

Can anyone clarify?

I would say they can indeed but it wouldn't be claimable against the tax. It would be an outlay so the employee can start earning earlier. The company can spend what they want on anything... whether they can then offset this against CT etc is a different matter.

[jmo21]

I would say they can indeed but it wouldn't be claimable against the tax. It would be an outlay so the employee can start earning earlier. The company can spend what they want on anything... whether they can then offset this against CT etc is a different matter.

But the work (and the money it generates) is for the benefit of the business, not the employee?

Surely for large co, it is absolutely "wholly and exclusively".

[stek]

While i'm on one - is this scenario a justifiable expense?

It pertains to a particular actual event, last year, on contract, Friday drive home, Swansea - Leeds, usually 260-280 miles depending on whether you take the Severn Bridge (stupid) or M50 or Heads of Valleys, but on this evening the M42 was cursed, two separate pileups, TomTom re-routed me twice, ended up mileage home was 350.

Claim 350?

[jmo21]

While i'm on one - is this scenario a justifiable expense?

It pertains to a particular actual event, last year, on contract, Friday drive home, Swansea - Leeds, usually 260-280 miles depending on whether you take the Severn Bridge (stupid) or M50 or Heads of Valleys, but on this evening the M42 was cursed, two separate pileups, TomTom re-routed me twice, ended up mileage home was 350.

Claim 350?

Why on earth wouldn't it be?!?!?

[stek]

Why on earth wouldn't it be?!?!?

Because the time saving the TomTom gave me is personal and doesn't affect the business?

[northernladuk]

But the work (and the money it generates) is for the benefit of the business, not the employee?

Surely for large co, it is absolutely "wholly and exclusively".

A good question but I still don't think it is and falls in the same area as cross training for employees where it isn't related to the work they are doing (say a career progression internally) so wouldn't strictly meet the rules. Corporate accounting is a different beast though.

As ever I am out of my depth on this one so should just really retire and go pick on the noobs in other threads which is much more my level.

[stek]

But the work (and the money it generates) is for the benefit of the business, not the employee?

Surely for large co, it is absolutely "wholly and exclusively".

This is my half-baked point! The extra flights are wholly and exclusively - the fact I'm in Spain in the first place obviously isn't but that's not a company issue is it. My Ltd has no right to dictate where I am does it?

[northernladuk]

While i'm on one - is this scenario a justifiable expense?

It pertains to a particular actual event, last year, on contract, Friday drive home, Swansea - Leeds, usually 260-280 miles depending on whether you take the Severn Bridge (stupid) or M50 or Heads of Valleys, but on this evening the M42 was cursed, two separate pileups, TomTom re-routed me twice, ended up mileage home was 350.

Claim 350?

For something as trivial as this I wouldn't think sticking in the 350 would raise any eyebrows... You actually did the mileage through no real fault of your own. Personally I would have just stuck the normal amount it though. You are talking 31 quid diff at .45p and then only claiming that off the tax...mehhh

[northernladuk]

This is my half-baked point! The extra flights are wholly and exclusively - the fact I'm in Spain in the first place obviously isn't but that's not a company issue is it. My Ltd has no right to dictate where I am does it?

Doesn't the fact that you are the company make all this a bit wooly? Large companies with multiple employees is one thing. You being the director and employee makes a difference in many areas???

[jmo21]

Because the time saving the TomTom gave me is personal and doesn't affect the business?

I don't think so.

What if the petrol you used sitting in traffic amounted to even more than driving the long distance (petrol and wear and tear)? How would they even begin to calculate that?

If HMRC were to pull you up on that .... oh wait....