Cost relating to working while travelling?

[Platypus]

What's the worst that happens if you claim it and it's later disallowed? You pay the tax. Big deal.

[d000hg]

I agree with the other posters here, claiming for these expenses could be a difficult one to justify to HMRC.

Are the tax savings enough to put yourself at risk of an investigation.

I struggle with the logic that doing something like this would put you at risk of an investigation.

[Clare@InTouch]

What's the worst that happens if you claim it and it's later disallowed? You pay the tax. Big deal.

Plus interest plus penalties, plus risk an investigation into other areas because HMRC decide you're the type who likes to push your luck. Is it worth it to save £20 in tax?

[Clare@InTouch]

I struggle with the logic that doing something like this would put you at risk of an investigation.

Only if HMRC found out you'd claimed it. But then if they do find it, they may wonder what else you've claimed that might be arguable. It's a long shot, but depends on your attitude to risk.

[TheFaQQer]

Claim it. There's no chance of an investigation, and if you do get one, you explain it and HMRC go away.

That's the response you obviously want to hear, so just claim it and enjoy your journey.

[speling bee]

Claim it. There's no chance of an investigation, and if you do get one, you explain it and HMRC go away.

That's the response you obviously want to hear, so just claim it and enjoy your journey.

And treat yourself to a decent bottle of claret through the books as it will help you concentrate. It shows HMRC that you are confident in your position and not sneaking around on the sly.

[d000hg]

Only if HMRC found out you'd claimed it. But then if they do find it, they may wonder what else you've claimed that might be arguable. It's a long shot, but depends on your attitude to risk.

I cannot possibly see they would find it unless they were already investigating me. Can you outline a realistic scenario where that could happen given how little is disclosed in a reduced CT return?

[Clare@InTouch]

I cannot possibly see they would find it unless they were already investigating me. Can you outline a realistic scenario where that could happen given how little is disclosed in a reduced CT return?

A VAT inspection or a business records check, or a PAYE check if they decide to look into the P11D figures and it's shown there. All they would need to do is ask what was in a certain category, or ask to look at any claims made by the directors/employees.

[LisaContractorUmbrella]

I cannot possibly see they would find it unless they were already investigating me. Can you outline a realistic scenario where that could happen given how little is disclosed in a reduced CT return?

Just claim it then - accountants are advising you not to but go for it if you think you can justify it. Just bear in mind that HMRC come calling, if you have claimed 1 dodgy expense they will assume that ALL your expenses could be dodgy which means they will look at all of them. They will then assume that you are the type that may get a bit creative with their CT or their VAT or any PAYE. They then might decide to look at all your contracts over the last millennium to see if you should have been inside IR35. They will then work out how much tax you owe - based on absolute worst case scenario, apply interest and penalties depending on what they find. They will then pop back to see you on a regular basis to make sure that you listened to what they told you during their 12 month visit during which they dissected every possible millimeter of your business.

Anyway - your call

[d000hg]

A VAT inspection or a business records check, or a PAYE check if they decide to look into the P11D figures and it's shown there. All they would need to do is ask what was in a certain category, or ask to look at any claims made by the directors/employees.

Ah, so these kind of "minimal investigations" do exist? That's what I wasn't aware of - I thought you were either investigated after random selection or you weren't.