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Husband and wife partnership

Allowable travel expenses

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Husband and wife partnership. Husband a partner for split of profits only and not involved in business. Wife has to travel alot for the business and stays in hotels. Husband always accompanies her and all expenses for both of them recorded in their bookkeeping i.e. eating out, train costs, hotels etc.

As the husband is not involved in these business purpose of these trips e.g. meetings and clients would not know of him, can all travel expenses be claimed as tax deductible? or should I be dusallowing 50% of travel costs, eating out etc

 

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By Tim Vane
30th Jun 2020 16:42

Well, if he always accompanies her on every trip, it might be worth considering disallowing the whole lot, including her 50%.

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By WallyGandy
30th Jun 2020 16:56

Why? Assuming wife genuinely needs out of town accommodation and reasonable meals then her proportion may be justified. Agree fully that husband' section is personal. To be absolutely thorough I'd look at the bar bill..... Seem to remember alcohol is a "no" (but I'm going back longer than I'll admit to here!)

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By Tim Vane
30th Jun 2020 17:08

Duality of purpose. More info needed of course, but there is a risk that if the husband is always accompanying the wife then it could be deemed to fail the W&E test in the same way as Bowden v Russell&Russell. Especially if it transpires she really doesn't need to stay away so often.

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By Gone Sailing
01st Jul 2020 20:05

Interesting.
Would it be different if a ltd co and they were both Directors?

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