Cost relating to working while travelling?

[Maslins]

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.

My understanding is some investigations are entirely random, but the majority are triggered by figures looking "odd" when compared to similar companies.

Granted, you having a £50 or whatever upgrade in your travel costs is highly unlikely to lead to you getting your travel costs looked into...unless possibly your travel costs are way above average anyway...but then the £50 in itself would be insignificant.

However, there is a difference between it not being spotted (ie you "get away with it") and it being ok. I'm sure a fair few people have put their lounge's sofa through as fixtures and fittings, the annual family holiday as travel/accommodation etc and got away with it. Doesn't make it ok.

Obviously your situation isn't as clear cut wrong, but looking at it more from a "will I get caught" perspective is drifting away from whether it's allowable or not.

My personal view, the trip is personal, and whilst the upgrade may be largely for business reasons, this doesn't change the fact that the entire cost only came about due to personal choices, not business ones. Hence I'd say not allowable.

[speling bee]

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.

Forget for the moment that you're a tax dodging spiv operating a Ltd for tax advantage, and I think this is the correct scenario:

The company needs work doing. The employee is on the train for personal reasons and can only do the work from first class. The company pays for the 1st class ticket upgrade as a legitimate business expense. The employee declares it as a BiK and pays the tax.

[d000hg]

However, there is a difference between it not being spotted (ie you "get away with it") and it being ok. I'm sure a fair few people have put their lounge's sofa through as fixtures and fittings, the annual family holiday as travel/accommodation etc and got away with it. Doesn't make it ok.

Obviously your situation isn't as clear cut wrong, but looking at it more from a "will I get caught" perspective is drifting away from whether it's allowable or not.

That is clearly just dishonest, and you're doing it on the hope you will almost certainly get away with it. The thing is my conscience would be totally clear if things played out as described and I was genuinely doing it for work... but knowing HMRC would definitely not see it this way makes it seem immoral even so.

Forget for the moment that you're a tax dodging spiv operating a Ltd for tax advantage, and I think this is the correct scenario:

The company needs work doing. The employee is on the train for personal reasons and can only do the work from first class. The company pays for the 1st class ticket upgrade as a legitimate business expense. The employee declares it as a BiK and pays the tax.

Interesting view. Do the professionals agree?

[Clare@InTouch]

You can add something in and then declare it as a benefit in kind, but that's no real benefit as you'll pay tax on it personally then. Your company will save 20% CT and you'll pay 20% income tax, plus have less of your basic rate band available for dividends.

[speling bee]

That is clearly just dishonest, and you're doing it on the hope you will almost certainly get away with it. The thing is my conscience would be totally clear if things played out as described and I was genuinely doing it for work... but knowing HMRC would definitely not see it this way makes it seem immoral even so.

Interesting view. Do the professionals agree?

You can add something in and then declare it as a benefit in kind, but that's no real benefit as you'll pay tax on it personally then. Your company will save 20% CT and you'll pay 20% income tax, plus have less of your basic rate band available for dividends.

Sorry, Clare. That is not the required answer. Anyone else?

[d000hg]

Sorry, Clare. That is not the required answer. Anyone else?

You're not even close. Just because someone pushes back on an answer they're given doesn't mean they are looking for a specific outcome.

And I wasn't asking if doing it that way would have any benefit, I was asking if it was correct.

[Clare@InTouch]

You're not even close. Just because someone pushes back on an answer they're given doesn't mean they are looking for a specific outcome.

And I wasn't asking if doing it that way would have any benefit, I was asking if it was correct.

It's absolutely fine to do it, it's just there are tax implications

[TheCyclingProgrammer]

It's absolutely fine to do it, it's just there are tax implications

The correct answer to pretty much any question on here that starts with "Is it ok for my company to...".

[TheFaQQer]

Forget for the moment that you're a tax dodging spiv operating a Ltd for tax advantage, and I think this is the correct scenario:

The company needs work doing. The employee is on the train for personal reasons and can only do the work from first class. The company pays for the 1st class ticket upgrade as a legitimate business expense. The employee declares it as a BiK and pays the tax.

Why bother? Either scam the whole lot or not claim it.

[speling bee]

Why bother? Either scam the whole lot or not claim it.

Of course. I was merely laying out how it would work in a real business / employee situation, to clarify why there is no point in putting it through the books (if honest).