Travel Insurance

[northernladuk]

Ok so how about this:

1. If you would routinely travel on a private trip without taking out travel insurance but you would take it out for a business trip then claim it against expenses as you wouldn't have paid for it otherwise (wholly and exclusively with incidental non-business benefit).

2. If you routinely take out travel insurance to cover leisure travel which covers you for business then don't claim it - you would have it even if you didn't travel on business.

3. If you have an existing policy but you have to pay £X amount extra to have it extended to cover business travel then claim for the extra portion.


I've taken out annual family policies for years and as far as I remember they have all covered business travel. I wouldn't claim the cost against the business because I would have it anyway and my leisure travel far out weighs my business travel....

Totally agree with all points. The point I was making was that the OP before me claimed this wasn't covered by wholly and exclusively due to some expenses rules he had linked. I argued that this links didn't cover insurance so fell back in to w & e as you also point out.

[Fred Bloggs]

Ok so how about this:

1. If you would routinely travel on a private trip without taking out travel insurance but you would take it out for a business trip then claim it against expenses as you wouldn't have paid for it otherwise (wholly and exclusively with incidental non-business benefit).

2. If you routinely take out travel insurance to cover leisure travel which covers you for business then don't claim it - you would have it even if you didn't travel on business.

3. If you have an existing policy but you have to pay £X amount extra to have it extended to cover business travel then claim for the extra portion.


I've taken out annual family policies for years and as far as I remember they have all covered business travel. I wouldn't claim the cost against the business because I would have it anyway and my leisure travel far out weighs my business travel....

There's the difference then, my annual travel policy specifically exclused business related travel. So, if required, I purchase a seperate policy and invoice for it to the client.

[Wanderer]

Is insurance a travel expense? I see no mention of it in either of those links. I would argue insurance falls out of this and back in to wholly and exclusively. Business insurances and personal ones tend to be different beasts.

Ok so how about this:

1. If you would routinely travel on a private trip without taking out travel insurance but you would take it out for a business trip then claim it against expenses as you wouldn't have paid for it otherwise (wholly and exclusively with incidental non-business benefit).

2. If you routinely take out travel insurance to cover leisure travel which covers you for business then don't claim it - you would have it even if you didn't travel on business.

3. If you have an existing policy but you have to pay £X amount extra to have it extended to cover business travel then claim for the extra portion.


I've taken out annual family policies for years and as far as I remember they have all covered business travel. I wouldn't claim the cost against the business because I would have it anyway and my leisure travel far out weighs my business travel....

[TheCyclingProgrammer]

Is insurance a travel expense?

Debatable, certainly, just thought it was worth mentioning. You could argue if it's travel insurance, that it is a travel expense, but you'd probably have to check that with HMRC.

Like you, I don't think it's worth the hassle either way.

[dav]

I dont think medical insurance would be needed if you are staying within the UK .

[northernladuk]

According to HMRC, the "wholly and exclusively" general rule does not apply to travel expenses.

The general rule for employees’ expenses: wholly and exclusively
Travel expenses: general: introduction

It's also worth noting:

Is insurance a travel expense? I see no mention of it in either of those links. I would argue insurance falls out of this and back in to wholly and exclusively. Business insurances and personal ones tend to be different beasts.

[TheCyclingProgrammer]

No to pro rata. If you get something that is not wholly and exclusively then thats that.

According to HMRC, the "wholly and exclusively" general rule does not apply to travel expenses.

The general rule for employees’ expenses: wholly and exclusively
Travel expenses: general: introduction

It's also worth noting:

You can allow a deduction for the whole or part of a single expense that has a dual purpose in two circumstances:

* where an apportionment can be made between a part that is incurred wholly and exclusively in the performance of the duties of the employment and a part that is not, an apportioned part can be deducted, see EIM31661 and
* where the non-business purpose is merely incidental the whole expense can be deducted, see EIM31664.

[JamJarST]

Annual non-business travel insurance is cheap anyway for most people so personally like NL I wouldn't mix up business and personal insurance.

In regards to business travel in the UK what do you need the insurance for? If it's to cover your stuff like a laptop then a household policy with a business extension and all risks cover should cover it. (Read the small print of the policy.)

Was mainly thinking of costs for cancellations and delays, plud emergency medical stuff.

[SueEllen]

Annual non-business travel insurance is cheap anyway for most people so personally like NL I wouldn't mix up business and personal insurance.

In regards to business travel in the UK what do you need the insurance for? If it's to cover your stuff like a laptop then a household policy with a business extension and all risks cover should cover it. (Read the small print of the policy.)

[northernladuk]

Couple of things I would say..

No to pro rata. If you get something that is not wholly and exclusively then thats that. You either don't claim it or you do and pay BIK.

Does your personal insurance cover business travel? It will be business cover because you are claiming it against your business. I think some insurances can be touchy so need to be v careful.

Personally I pay for a year long multi trip cover for me and my family. I am going to use it for me if I was using it for business or not. I am not bothered about trying to scrimp and save by charging for the company and muddying the waters and it is a few hundred quid anyway so really not worth it. You only save the tax on it anyway so it's not like you are saving the whole lot.

Check the T&C's and pay for it yourself to be squeeky clean IMO.

You could of course wait for someone that knows what they are talking about to reply though

[Fred Bloggs]

Ordinary travel insurance excludes business use, normally. I have bought business travel insurance when required for an overseas visit on behalf of client co's. I have then invoiced the cost via the agency. You need to make it clear you are doing this before doing so. On this particular job, the agency actually provides business cover at no cost to the contractor on request as required. It will be worth asking your agency if they offer this.

[JamJarST]

Bump .... anyone???

[JamJarST]

I fly to and from Aberdeen from my base in England (Berkshire) on a weekly basis for my contract. I am going to buy travel insurance and was wondering if this is an allowed travel expense. Also assuming that it is and I also go on personal trips for holiday, should I pro rate the cover and declare BIC?