Travel expense - travelcard

[fyre]

thanks for the reply everyone. I don't have an accountant yet, trying to attempt everything myself for now as I'm just starting out. I'll most likely get an accountant when things start to pick up.

I guess I'll keep logs in the mean time in case HMRC come knocking.

EIM16067 - Vouchers and credit tokens: transport vouchers: travel cards: examples - just like the 'TheCyclingProgrammer' mentioned, I think I fall into example 2.

[aoxomoxoa]

I don't have an accountant yet, trying to attempt everything myself for now as I'm just starting out. I'll most likely get an accountant when things start to pick up.

I guess I'll keep logs in the mean time in case HMRC come knocking.

While you're starting out is arguably when you most need an accountant, to help you avoid making silly and potentially expensive mistakes before you know better!

[Clare@InTouch]

While you're starting out is arguably when you most need an accountant, to help you avoid making silly and potentially expensive mistakes before you know better!

Agreed. There are also things that cannot be backdated, so you may be missing out by not appointing an accountant sooner. They may cost you a bit in fees, but a good accountant will save you more than they cost you in the long run.

[Lambert Simnel]

As a slight tangent on this, has anyone had experience of buying annual tickets when still within the 24 months (and the contract end date is also within 24 months), but the period covered by the ticket extends beyond the 24 month deadline?

On one hand, when the annual ticket is purchased, there is no agreed contract beyond the 24 months, so the expense incurred on the day of the purchase would be considered an allowable business expense. However, if there is some form of pro-rata applied to the ticket cost, then it would seem clear that part of the cost should not be considered as being deductible as it results in an entitlement to travel outside the 24 months period.

Any views?

[northernladuk]

As a slight tangent on this, has anyone had experience of buying annual tickets when still within the 24 months (and the contract end date is also within 24 months), but the period covered by the ticket extends beyond the 24 month deadline?

On one hand, when the annual ticket is purchased, there is no agreed contract beyond the 24 months, so the expense incurred on the day of the purchase would be considered an allowable business expense. However, if there is some form of pro-rata applied to the ticket cost, then it would seem clear that part of the cost should not be considered as being deductible as it results in an entitlement to travel outside the 24 months period.

Any views?

I think the devil is in the details of which ticket. You can refund National rail and Oyster tickets pro rata so I would expect the answer to your question would be to stop using the current ticket at the point you KNOW you are going over 24 months, get your money back pro rata and claim what it cost you. Get a new ticket and it's all out of your pocket.

I am guessing most if not all season tickets offer some sort of pro-rata refund.

Easiest thing would be to not buy annual tickets if you know you won't be there

[Lambert Simnel]

I think the devil is in the details of which ticket. You can refund National rail and Oyster tickets pro rata so I would expect the answer to your question would be to stop using the current ticket at the point you KNOW you are going over 24 months, get your money back pro rata and claim what it cost you. Get a new ticket and it's all out of your pocket.

I am guessing most if not all season tickets offer some sort of pro-rata refund.

Easiest thing would be to not buy annual tickets if you know you won't be there

Yeah, true. Though National Rail pro-rate refunds tend to be on the "less than generous" side, in my experience. And while I don't know I'll be here beyond the 24 months, I don't know for sure I won't, if you see what I mean. And, as a commuter in the the glorious metropolis of London, chances are if I'm not at this client, I'll be at another one within a mile or two, so the annual ticket isn't much of a shot in the dark, really.

[SueEllen]

Yeah, true. Though National Rail pro-rate refunds tend to be on the "less than generous" side, in my experience. And while I don't know I'll be here beyond the 24 months, I don't know for sure I won't, if you see what I mean. And, as a commuter in the the glorious metropolis of London, chances are if I'm not at this client, I'll be at another one within a mile or two, so the annual ticket isn't much of a shot in the dark, really.

Your business use should really follow your contract dates. So buy monthly or period tickets that follow it. Yes it costs slightly more but then you aren't clearly taking the p*ss.