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If travel expenses are no longer allowable because of a contract which has been signed over 24 months, are they added back on limited company tax comp or posted to DLA?

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By Tax Dragon
02nd Apr 2019 13:41

Can you expand? It makes no more sense than yesterday. And this time it's not funny.

Who is paying what to whom, by way of travel expense?

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Replying to Tax Dragon:
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By Vile Nortin Naipaan
02nd Apr 2019 15:00

There's a reason that it makes no sense; it is a question that falls into the category ordinarily referred to as "fuching stupid".

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Replying to Vile Nortin Naipaan:
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By Martin B
02nd Apr 2019 17:05

Hello and wellcome back

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Replying to Vile Nortin Naipaan:
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By Martin B
02nd Apr 2019 17:05

Hello and wellcome back

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By SA2016
02nd Apr 2019 17:32

UK Limited company has one client who is based in France. The company has signed a 36 month contract to provide consultancy to the company in France.

UK company incurs travel expenses travelling from UK base to/from France (flights plus hotel etc.) these are not reimbursed from the client.

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Replying to SA2016:
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By Vile Nortin Naipaan
02nd Apr 2019 17:50

And why do you think that the travel costs are not corporation tax deductible? Please share.

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Replying to Vile Nortin Naipaan:
RLI
By lionofludesch
02nd Apr 2019 18:12

Vile Nortin Naipaan wrote:

And why do you think that the travel costs are not corporation tax deductible? Please share.

And herein is precisely the nub.

Which taxpayer is wanting to claim these travel costs ?

The company ? Or the employee ?

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Replying to SA2016:
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By Cheshire
02nd Apr 2019 18:35

Do you deal with a lot of clients who have one client in foreign climes, who sign 36 month contracts and who have issues with travel?
https://www.accountingweb.co.uk/any-answers/claiming-travel-expenses

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By SA2016
02nd Apr 2019 18:51

Because the travel costs would be treated as Ordinary Commuting as the contract is over 24 months?

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Replying to SA2016:
Caroline
By accountantccole
03rd Apr 2019 12:10

If it is ordinary commuting, presumably you are saying it is to a regular work place and therefore have you considered whether your co has a French branch if you are performing duties in France,regularly and over a long period?

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Replying to accountantccole:
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By Vile Nortin Naipaan
03rd Apr 2019 13:10

I'd respectfully suggest that that may be too advanced a topic.

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Replying to Vile Nortin Naipaan:
RLI
By lionofludesch
03rd Apr 2019 14:02

Vile Nortin Naipaan wrote:

I'd respectfully suggest that that may be too advanced a topic.

Respectfully ?

Now there's a novelty !!

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By SA2016
03rd Apr 2019 14:21

Thanks for some of the replies thus far - am I therefore correct in that for the UK company the travel expenses should be posted to DLA?

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Replying to SA2016:
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By Rweaver
03rd Apr 2019 14:50

Is this a wind-up?

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By SA2016
03rd Apr 2019 15:36

Is anyone offering a sensible answer to my questions, I appreciate my original Q had a lack of detail in it but I was hoping for some guidance to my query?

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Replying to SA2016:
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By Vile Nortin Naipaan
03rd Apr 2019 16:03

Your question doesn't just need expansion. It needs re-engineering. You seem to have grasped the stick from the incorrect end.

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Replying to Vile Nortin Naipaan:
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By Rweaver
03rd Apr 2019 17:16

Vile Nortin Naipaan wrote:

Your question doesn't just need expansion. It needs re-engineering. You seem to have grasped the stick from the incorrect end.

I would have said the incorrect stick altogether has been grabbed!

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By SA2016
03rd Apr 2019 18:27

Here goes then....

UK company which has one director/shareholder has one client, who is based on France

UK co has signed a consultancy agreement based on day rate for 36 months. The director/company will be carrying out the consultancy in France.

UK company will be incurring travel expenses in order for the director to travel to France and stay in hotels etc to allow him to carry out consultancy.

Will the travel expenses which are paid out of UK company bank be allowable for corp tax purposes?

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Replying to SA2016:
RLI
By lionofludesch
03rd Apr 2019 18:53

I vote yes.

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Replying to lionofludesch:
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By SA2016
03rd Apr 2019 19:24

Not ordinary commuting then?

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Replying to SA2016:
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By lionofludesch
03rd Apr 2019 22:20

SA2016 wrote:

Not ordinary commuting then?

Oh, yes. Definitely.

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By Tax Dragon
03rd Apr 2019 22:54

Isn't the cost of getting to work ordinarily a personal cost? At least, if it's ordinary commuting?

An employer can of course opt to pay any personal expense of an employee. A corporate employer would normally obtain tax relief for such payments.

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By Waves
03rd Apr 2019 23:21

IR35?

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By Tim Vane
03rd Apr 2019 23:40

Are the costs a legitimate expense of the business? Start there.

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Replying to Tim Vane:
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By Tax Dragon
03rd Apr 2019 23:53

What does "legitimate" mean?

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By SA2016
04th Apr 2019 06:47

So CT relief would be available but the payments would be taxable on the Director so we may as well treat the costs as drawings?

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Replying to SA2016:
RLI
By lionofludesch
04th Apr 2019 07:55

SA2016 wrote:

So CT relief would be available but the payments would be taxable on the Director so we may as well treat the costs as drawings?

Well, that's up to the director and his personal tax position.

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By Vile Nortin Naipaan
04th Apr 2019 11:15

OFFS has nobody bothered to read ITEPA 2003, s 370. And what about the individual's residence position if he's going to be "permanently" based outside the UK for 3 years... And so on...

This is a question the OP should clearly be referring to somebody else, so stop fuching encouraging them to keep stealing this client's money!

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