Travel expenses for Director lives outside London

Are they reimburseable?

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Hi all

A company with 2 directors, one lives in London and the other outside. - Mr A, lives outside London.

Mr A commutes to London 4 days, 3 days to be at the clients and not the office at all, and one day to the office for meeting.

Can Mr A, 

1. Claim his travel to London when he sees the clients?

2. Claim his travel to London office to meet staff?

3. Be considered a remote worker as he is only in the office once a week.

Many thanks for your help.

Regards

Dumbass

Replies (17)

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RLI
By lionofludesch
09th Oct 2017 09:45

Sadly, there are no special deals for people who live outside London.

What a great idea that would be, though!!

Normal rules apply - is this a temporary workplace or not ?

On the face of the limited information you disclose, I'd say travel to the office is ordinary commuting, travel to the clients is allowable.

But start combining those trips and the waters are a little more murky.

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Replying to lionofludesch:
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By Portia Nina Levin
09th Oct 2017 10:39

If the clients aren't all that far from the office I would beg to differ, and just say that London was the permanent workplace.

@OP:

Of course the individual can claim all his expenses from the company, but those that constitute ordinary commuting are taxable on the individual as earnings.

There is no such thing as a "remote worker" by the way.

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By dumbass
09th Oct 2017 11:20

Thanks

So technically he could reclaim the travel from his outside London home to the clients office (in London).

The Office is not temporary.

If he still pays for his ticket to the office travel himself and doesnt claim any of that.

Thanks a lot.

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Replying to dumbass:
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By Portia Nina Levin
09th Oct 2017 11:34

You don't understand the issues here , do you?

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Replying to dumbass:
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By andy.partridge
09th Oct 2017 11:35

That is the worst summary of advice given I have ever seen.

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Replying to dumbass:
RLI
By lionofludesch
09th Oct 2017 12:38

The client's office might not be temporary.

You don't give us enough information to decide.

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Replying to lionofludesch:
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By Portia Nina Levin
09th Oct 2017 12:46

You're becoming a noise, that is distracting from the underlying issue; it may be London that is not a temporary workplace.

The OP isn't going to understand the point though, so I suppose it doesn't really matter.

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Replying to Portia Nina Levin:
RLI
By lionofludesch
10th Oct 2017 12:52

Thank you.

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Replying to lionofludesch:
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By Portia Nina Levin
10th Oct 2017 13:19

Anytime.

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By dumbass
09th Oct 2017 11:44

Haha I am going to ignore the critisim, I replied to lionofludesch pressed entered after you had given your advice.

Your advice's summary is that,
Travel to London wouldnt be reimburseable expenses as the office is there. Travel from Office to Clients is okay.

However since the director is travelling straight to the clients, it's classed as travel to London (office).

So in summary not even a part of this is claimable? It just happens that the clients are in London, if the clients were outside, which sometimes happens, travel is ok reclaim

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By Portia Nina Levin
09th Oct 2017 11:45

I wasn't critisising. I was stating a fact.

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Replying to dumbass:
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By I'msorryIhaven'taclue
09th Oct 2017 12:20

[*** wrote:
]

So in summary not even a part of this is claimable? It just happens that the clients are in London, if the clients were outside, which sometimes happens, travel is ok reclaim

Extract from

https://www.accountingweb.co.uk/comment/reply/152487/619274?quote=1#comm...

You haven't told us the additional travelling distance(s) involved (if any). London's a big town, [***]! The following extracts will give you a flavour of what Piggy means by the client's premises being "close" to the permanent workplace: note that HMRC use a 500 yard additional travel distance in their first (disallowable) example; and 12 miles in their second (allowable) example, and would like you to believe that 10 miles is where the line should be drawn.

4.10
Sometimes an employee may travel to a temporary workplace without that journey being significantly different from their ordinary commuting journey. The tax rules deny tax relief in circumstances where, for practical purposes, a journey is very similar to the employee’s ordinary commuting journey.

Example
Keith is a health and safety inspector who lives in Leicester. His office in Nottingham is 500 yards away from a processing plant which he visits on a quarterly basis to conduct health and safety reviews. When he travels direct from home to the processing plant he is going to a temporary workplace but his journey is substantially the same as his ordinary commuting journey so he is not entitled to any tax relief.

Example
Lauren lives in Pudsey. She travels 5 miles to work in Leeds where she is a shop manager. One day she is asked to go to Ilkley to stand in for a colleague who is sick and so travels an extra 12 miles. Her journey to Ilkley is clearly different from the journey she makes daily to Leeds so she is entitled to tax relief.

4.11
This is intended to be a common sense rule which applies where the journey to or from a temporary workplace is broadly the same journey as the employee’s ordinary commuting journey. In particular, it will deny tax relief where employers or employees seek to turn an ordinary commuting journey into a business journey for the purposes of obtaining tax relief. The application of this rule will depend on the particular circumstances of any case but we will not normally seek to argue that a journey to or from a temporary workplace is substantially ordinary commuting where the extra distance involved is 10 miles or more each way.

Caveat: You have to read these extracts in the context of the guidance booklet I've linked to.

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By mrme89
09th Oct 2017 11:53

Let's play a game. The game is called 'spot the irony'.

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Replying to mrme89:
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By I'msorryIhaven'taclue
11th Oct 2017 11:30

mrme89 wrote:

Let's play a game. The game is called 'spot the irony'.

I'll have a bash.

[*** wrote:
]

Haha I am going to ignore the critisim

Socratic irony?

Portia Nina Levin wrote:

I wasn't critisising.

Sarcastic irony?

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Replying to I'msorryIhaven'taclue:
By mrme89
10th Oct 2017 12:41

Neither.

A pat on the back for effort, however.

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Replying to mrme89:
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By I'msorryIhaven'taclue
10th Oct 2017 13:18

Doh!

[*** wrote:
]

So in summary not even a part of this is claimable? It just happens that the clients are in London, if the clients were outside, which sometimes happens, travel is ok to reclaim

Paradoxical irony?

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By justsotax
10th Oct 2017 13:38

irony...OP's name?

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