Travel costs paid direct by client's customer

Non wholly and exclusively travel costs paid by customer. Is this additional income?

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UK based locum trading through limited company is currently in Spain. His customer is paying direct for the travel cost to the UK so no travel costs will appear on his sales invoice. Should the cost of travel from Spain to the UK be added to his income?

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By kaff
16th Jul 2020 17:07

We could do with some more information. Why was he in Spain in the first place? On company business or for personal reasons? If the customer has agreed to pay for travel to UK, that's presumably part of the contractual agreement between the company and the customer. If so, why won’t it be on the sales invoice from the company to the customer?

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Replying to kaff:
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By grannysmith
16th Jul 2020 17:22

Thanks for your response. He is in Spain for personal reasons. He is just putting his locum charges on the sales invoice as that is what the customer is paying him. As you say the contract between them includes the travel so he should add the cost to his income.

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By Paul Crowley
16th Jul 2020 18:18

Who is actually buying the travel tickets?

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Replying to Paul Crowley:
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By grannysmith
17th Jul 2020 06:53

The locum's customer is buying and paying for the tickets.

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By Sandnickel
17th Jul 2020 12:47

Why would this need to go on your client's income? He would be taxed on money he hasn't received and wouldn't get tax relief on the travel expense to offset it because he hasn't paid for the travel.

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