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Business Travel and Holidays

An employee of a limited company is traveling on a sales trip to USA. At the end of the trip he is intending to take a private holiday. The company is paying for the flights and hotel, etc while he is working. He will pay for the hotel while he is on holiday.

Can all of the travel costs still be treated as business costs or will there be an element on which the employee will be taxed.



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02nd Jul 2010 10:39

All travel is allowable

The employee's situation sounds almost identical to that posed by HMRC in their Employment Income manual, page EIM31811. The flights are necessarily incurred, even though the trip is not wholly and exclusively for business: nevertheless, the costs of the flights are wholly allowable.

You must however be sure that the costs of the sales trip are wholly, exclusively and necessarily incurred in the performance of the employment. If it's an excuse for a jolly, you won't get any relief at all.

Hope this helps,


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