Reply to: Travelling for Interview - Business Expense?

[Lance]

Correct, the account manager thought the interview was for a permanent job, which is not an expense you can claim. He has now clarified ''Agreed, travel expense of interviews for contract employment whether full time or part time on behalf of your Ltd will be eligible to claim as expense'' which makes more sense.

He could have been clearer from the beginning and ask the question, is the interview for a perm or contract role, rather than jump into conclusions. I could have been clearer too and specify it is an interview for contract roles, I assumed it would be obvious, considering I am a contractor, but I guess it wasn't.

So it seems clear now, even if I see other 'experts' saying such expenses cannot be claimed, some others say they can.

Example of 'expert' saying they can be claimed: Contractors' Questions: Can I claim interview expenses?

Example of another 'expert' saying you can't claim: Contractors’ Questions: Can I claim travel expenses? CUK02 (read at the end)


a lot of 'experts' with opposite views on the same subject

The experts don't disagree. Your interpretation is at fault.
First link says for a LTD it's an expense, for employment it's not so clear and probably not.
The second link is for self-employed (ie. not a LTD.)

[Lance]

Sure...I guess I just wonder as it seems WTFH does from their post shortly after mine whether maybe we're not getting the whole story. Some posters can be quick to jump to the "accountant is useless" conclusion. They may be correct, but equally at this stage there's plenty of other possible reasons.

I agree with you on this. I did suggest accountant as an idiot as the alternative was that the poster was the idiot. The outcome is the same though.

It turns out that the poster asked someone who isn't an accountant. Seems odd to me. If I ring my accountants the only thing I want non-accountants to do is put me through or take a message.

[TheCyclingProgrammer]

Yes they do, providing it is a justified business expense. Going from home to your registered workplace... no expenses paid.. but going from home (or registered office) to a client side would be deemed a business expense, unless the salary reflects the total cost of what the employee will use in expenses.

An employer does not have to reimburse an employee's expenses....ever. It's a matter of company policy. It's a completely separate issue to whether or not an employee can claim tax relief.

It's well within an umbrella's right to have an expenses policy that means they only pay out expenses while in contract. If you aren't happy with this then you should consider running your own Ltd and setting your own expenses policy.

[mav2005]

Is it possibly confusion over terminology? Ie I imagine if you'd called it a meeting with a potential client they'd likely be fine with it. The usage of the word "interview" would make me think "job"/"employed", so possibly they were assuming that?

Correct, the account manager thought the interview was for a permanent job, which is not an expense you can claim. He has now clarified ''Agreed, travel expense of interviews for contract employment whether full time or part time on behalf of your Ltd will be eligible to claim as expense'' which makes more sense.

He could have been clearer from the beginning and ask the question, is the interview for a perm or contract role, rather than jump into conclusions. I could have been clearer too and specify it is an interview for contract roles, I assumed it would be obvious, considering I am a contractor, but I guess it wasn't.

So it seems clear now, even if I see other 'experts' saying such expenses cannot be claimed, some others say they can.

Example of 'expert' saying they can be claimed: Contractors' Questions: Can I claim interview expenses?

Example of another 'expert' saying you can't claim: Contractors’ Questions: Can I claim travel expenses? CUK02 (read at the end)


a lot of 'experts' with opposite views on the same subject

[Maslins]

Even so that's still a very poor mistake for his accountant to make. Shows a misunderstanding of what he does and a certain amount of laziness by not attempting to clarify.

Sure...I guess I just wonder as it seems WTFH does from their post shortly after mine whether maybe we're not getting the whole story. Some posters can be quick to jump to the "accountant is useless" conclusion. They may be correct, but equally at this stage there's plenty of other possible reasons.

[northernladuk]

Is it possibly confusion over terminology? Ie I imagine if you'd called it a meeting with a potential client they'd likely be fine with it. The usage of the word "interview" would make me think "job"/"employed", so possibly they were assuming that?

Even so that's still a very poor mistake for his accountant to make. Shows a misunderstanding of what he does and a certain amount of laziness by not attempting to clarify.

[WTFH]

Just want to check - are there any other factors that you haven't told us (or that you haven't told your accountant).
For example: "I'm flying to Australia on the off-chance of bumping in to the manager of a company based down the road from me in England, who I know is currently on holiday in Australia, and if I meet up with him he might offer me a job"
Or: "I've got an interview lined up and I could take my wife and children, stay in a 5 star hotel for a week so I can go to a 1 hour interview, and I'll expense it"
Or: "I've got an interview for a permanent job and I'm in the process of winding up my company"

[mav2005]

Your accountant is an idiot then. Ask to talk to someone more senior at the company.
If they get this simple question wrong, what else do they get wrong?

well, response came from an 'account manager' so definitively not an accountant, I shall reach out to a proper accountant to clarify

[Maslins]

I have asked my accountant, to be sure, and they said travel to an interview cannot be claimed...

Is it possibly confusion over terminology? Ie I imagine if you'd called it a meeting with a potential client they'd likely be fine with it. The usage of the word "interview" would make me think "job"/"employed", so possibly they were assuming that?

[Lance]

I see conflicting responses both here and in many other places.
I am a contractor and have a Ltd, I have always claimed travel expenses to interviews, conferences etc as long as they are related to my business.
I have asked my accountant, to be sure, and they said travel to an interview cannot be claimed saying ''Travel and subsistence expenses can be claimed if they are wholly for business reasons only. Job interviews cannot be termed as business related activities'' which doesn't make sense to me as the interview is a business meeting to sell your services to a client, weather you get the contract or now, you are meeting a potential client. I will carry on claiming them.

Your accountant is an idiot then. Ask to talk to someone more senior at the company.
If they get this simple question wrong, what else do they get wrong?

[mav2005]

Interview travel expenses

I see conflicting responses both here and in many other places.
I am a contractor and have a Ltd, I have always claimed travel expenses to interviews, conferences etc as long as they are related to my business.
I have asked my accountant, to be sure, and they said travel to an interview cannot be claimed saying ''Travel and subsistence expenses can be claimed if they are wholly for business reasons only. Job interviews cannot be termed as business related activities'' which doesn't make sense to me as the interview is a business meeting to sell your services to a client, weather you get the contract or now, you are meeting a potential client. I will carry on claiming them.

[BolshieBastard]

Jesus, there's some rubbish talked on this thread about travel expense incurred on company business to seek a new role!

Whether you call it a 'job interview' or a 'business meeting' or a 'sales presentation,' its travel required in connection with your business ie to seek work. And, if its wholly and exclusively for your work, its claimable.

Personally, I wouldnt touch an umbrella with a barge pole so Im not surprised they dont allow it.

And as for being 'the employee of the client company' you're seeking the role with, sheesh!

If you run your own Ltd co, you are continually employed by your co not the client co.

[pmeswani]

I'm suprised about Parasol. It seems to be a grey area at best as to whether they really are your employer.

For the purposes of Tax.... yes they are... but only if you are using them as an Umbrella. I don't know off hand if they offer an Accounting services for Ltd's.

Employer's dont have to pay employee's expenses, they can use whatever rules they want to. However, you can still claim expenses incurred whilst on employer's business on your tax return if not paid by your employer. So maybe you'd get away with that.

Yes they do, providing it is a justified business expense. Going from home to your registered workplace... no expenses paid.. but going from home (or registered office) to a client side would be deemed a business expense, unless the salary reflects the total cost of what the employee will use in expenses.

[VectraMan]

I'm suprised about Parasol. It seems to be a grey area at best as to whether they really are your employer.

Employer's dont have to pay employee's expenses, they can use whatever rules they want to. However, you can still claim expenses incurred whilst on employer's business on your tax return if not paid by your employer. So maybe you'd get away with that.

[original PM]

It doesn't make total sense to me. Going to an interview is for a contracter whether umbrella employee or ltd company is exactly equivalent to a sales person from a larger company doing a pre-sales visit - it is all part of the 'cost of doing business'. Sure if there is no contract in place at the time the umbrella cannot offset the expense against anything but I don't see why they can't carry forward this expense to be offset against the next contract if there is one. If there isn't one then OK its tough luck!

Interesting - I do not think they can for the cost of your first interview as at the time of doing that you were not an employee of the company.

However when you have joined Parasol and then travel to another interview you are in effect selling Parasol's consultancy services - if you do get that contract the contract will be between Parasol and the agency or end client and you will still be an employee of Parasol.

You cannot be being going for a job interview as that would indicate if you were succesful you would therefore change employers however whatever the outcome of the 'interview' you will still be being employed by Parasol.

This is surely no different from any employed sales person claiming expenses for travelling to a sales meeting/presentation.