Reply to: Monthly railway ticket- can this be expensed?

[skysies]

U sure a yearly one is THAT much cheaper?

I know when I used to do it, 7 day was a little bit cheaper than daily, montly was tons cheaper, 3 monthly was 3x monhtly so pointless, and yearly was just a little cheaper again.

In fact, doing the month+x trick it was cheaper than a yearly.

Definitely the yearly one is much cheaper - with the expected ticket rise of %3.6 from Jan-18, if I buy now the yearly ticket I will directly save £41 per month, or £492 per year...

For the tulip service they offer me on a daily basis, each pence saved from them is even more appreciated...

[northernladuk]

Accountant is wrong

Working for big consultancies as permie, quite normal to be contractually based at home and expense a monthly train pass to where you happen to be working, which is often london, and HMRC never question it. Shouldnt be any different for any company.

Completely different model. You can expense many things through big companies they can't claim the tax back on. It's either part of investing in growth or they pass it straight on the client. Just because you can do it as a number in a big company doesn't mean you can do it against tax in your own business.

[CoolCat]

My accountant told me that I can't really expense the monthly ticket, as this could also be used for personal purposes. Pro-rata won't work as well. That all came as a nasty surprise to me...

I'm commuting daily to my work, so I thought this is a legit business expense, and it's not small at all, around £250 per month.

Any feedback on that really appreciated.

Accountant is wrong

Working for big consultancies as permie, quite normal to be contractually based at home and expense a monthly train pass to where you happen to be working, which is often london, and HMRC never question it. Shouldnt be any different for any company.

[psychocandy]

Ok, to wrap this up, it seems legit to claim a monthly train ticket, if that's less than the daily tickets for the days I go to work...Still a bit unsure about claiming an yearly ticket though, as I would expense a whooping £2500 at one time...This one would be much cheaper than the monthly one, let alone the daily...

U sure a yearly one is THAT much cheaper?

I know when I used to do it, 7 day was a little bit cheaper than daily, montly was tons cheaper, 3 monthly was 3x monhtly so pointless, and yearly was just a little cheaper again.

In fact, doing the month+x trick it was cheaper than a yearly.

[TheCyclingProgrammer]

Ok, to wrap this up, it seems legit to claim a monthly train ticket, if that's less than the daily tickets for the days I go to work...Still a bit unsure about claiming an yearly ticket though, as I would expense a whooping £2500 at one time...This one would be much cheaper than the monthly one, let alone the daily...

The same principle applies. If the annual ticket is cheaper (which it will be) and you expect to be there for a year then why not? Even if you're not there for a year, as long as you cancel the ticket and obtain a refund for the remaining period, no BIK issue should arise.

[SueEllen]

So would I, especially if you only last somewhere a week.

With a yearly or monthly ticket if there is enough unused time you can claim the money back.

Enough depends on the operator.

[MrMarkyMark]

Ok, to wrap this up, it seems legit to claim a monthly train ticket, if that's less than the daily tickets for the days I go to work...Still a bit unsure about claiming an yearly ticket though, as I would expense a whooping £2500 at one time...This one would be much cheaper than the monthly one, let alone the daily...

So would I, especially if you only last somewhere a week.

[skysies]

Load of bollox. Why would you have to spend more on separate tickets (BTW - there is no mon-fri only 7 day tickets) just in case you used at weekend FFS? Listen to Nixon Williams I would.

Or another way around it - catch the train, pay for season ticket out of your own money and claim 45p a mile. Oops did I just say that? :-)

Ok, to wrap this up, it seems legit to claim a monthly train ticket, if that's less than the daily tickets for the days I go to work...Still a bit unsure about claiming an yearly ticket though, as I would expense a whooping £2500 at one time...This one would be much cheaper than the monthly one, let alone the daily...

[mattfx]

or c) that it was your fuel receipt in the first place

This. An ex of mine had a father who owned an engineering company - he was forever putting his families fuel through his business!

[barrydidit]

How does a fuel receipt help prove a) how many miles you've done and b) that they were for business?

or c) that it was your fuel receipt in the first place

[TheCyclingProgrammer]

I know someone who was asked to prove they did the miles they claimed. Spent 3 years arguing that one.
Keep your fuel receipts people if you claim miles.

How does a fuel receipt help prove a) how many miles you've done and b) that they were for business?

Edit: all I'm saying is that receipts just aren't necessary unless you're also reclaiming the VAT. A mileage log is sufficient.

[Lance]

I guess but it'd be difficult to prove. After all, who keeps all their petrol receipts?

I do. After I heard that story.
And since I've come off flat rate VAT I claim VAT on fuel so MUST have the receipts.

[psychocandy]

I know someone who was asked to prove they did the miles they claimed. Spent 3 years arguing that one.
Keep your fuel receipts people if you claim miles.

I guess but it'd be difficult to prove. After all, who keeps all their petrol receipts?

[Lance]

Or another way around it - catch the train, pay for season ticket out of your own money and claim 45p a mile. Oops did I just say that? :-)

I know someone who was asked to prove they did the miles they claimed. Spent 3 years arguing that one.
Keep your fuel receipts people if you claim miles.

[billybiro]

Yeah; I must admit people haven't ever been impressed if they've had to tell me something fundamental about my job!

I guess the best thing to do is point them in the direction of HMRC legislation, ask them to re-evaluate and provide you with a sizeable credit note?

FTFY.