travel & subsistence

travel & subsistence

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Claiming travel costs for initial and final journeys, several interim journeys back to UK & full accommodation costs whilst abroad for the 6 months. Is this all allowable?
flynnarinsky

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By User deleted
25th Jul 2008 12:26

T&S abroad
Thanks for this.

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By Euan MacLennan
24th Jul 2008 12:04

No
As it is a fixed-term contract, it is a permanent workplace and your client is not entitled to tax relief on the cost of ordinary commuting from home in the UK to work overseas or for accommodation over there under the general expenses rule.

If the employer had been resident in the UK, the client would have been entitled to tax relief under the special rules on foreign travel for the cost of the initial travel out and the final travel back. Also, if the taxable earnings included the cost of accommodation or it was paid or reimbursed by the employer and would therefore be a taxable benefit, the client would be entitled to tax relief on that cost of accommodation. However, as the employer was a non-UK company, your client cannot claim these reliefs.

Also, if the employer paid or reimbursed the cost (so that it would be a benefit in kind), the client could claim tax relief for the interim travel to and from the UK during the contract, and also for two trips in each tax year for each member of her close family.

In short, if her taxable earnings were just her salary for the contract, she cannot claim tax relief on any travel, accommodation or subsistence expenses.

It is all in 490 Employee Travel.

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By User deleted
24th Jul 2008 10:45

travel & subsistence
She worked for a non-UK company on a 6 month contract.

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By gilderda
24th Jul 2008 09:59

Without having the full facts to hand...

... it's hard to say.

Has he been posted overseas temporarily by a UK based employer, or was he working for a non-UK employer and just travelling back to the UK to catch up with friends/family etc?

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