Originally posted by TheFaQQer
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Previously on "Cost relating to working while travelling?"
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Originally posted by speling bee View PostForget 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.
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Originally posted by Clare@InTouch View PostIt's absolutely fine to do it, it's just there are tax implications
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Originally posted by d000hg View PostYou'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.
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Originally posted by speling bee View PostSorry, Clare. That is not the required answer. Anyone else?
And I wasn't asking if doing it that way would have any benefit, I was asking if it was correct.
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Originally posted by d000hg View PostThat 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?Originally posted by Clare@InTouch View PostYou 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.
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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.
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Originally posted by Maslins View PostHowever, 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.
Originally posted by speling bee View PostForget 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.
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Originally posted by d000hg View PostAh, 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.
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.
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Originally posted by d000hg View PostAh, 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.
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.
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Originally posted by Clare@InTouch View PostA 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.
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Originally posted by d000hg View PostI 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?
Anyway - your call
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Originally posted by d000hg View PostI 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?
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Originally posted by Clare@InTouch View PostOnly 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.
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Originally posted by TheFaQQer View PostClaim 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.
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