Share this content
0
537

Travelling expenses to do research

Is travelling expenses for doing research allowable for tax?

Didn't find your answer?

Search AccountingWEB

My client is a writer in a special field and need travelling in UK and overseas a lot to do research. He is a director of his owner manager limited company.  He claims his travelling and hotel etc costs via the company accounts.  In the past,  he is a writer for a fixed contract but that contract now expired and is looking for further work and in fact ,  have been doing some lecturing work.  But he continues to incur these costs and relatively at the same level as before.  Would these be allowable for tax?  He insists that he needs to do these travelling to do research on his field of work but as related income is not as much and not on contract.  I wonder whether they are allowable in total or might be viewed by HMRC as hobby.

Replies

Please login or register to join the discussion.

avatar
27th Jun 2019 10:10

You are clearly suspicious that your client is using research as an excuse for a holiday. I think it would depend on the facts - is he actually producing anything from the research? Does he have a book that he is working on? I would say from the info you've posted that these trips are not wholly and exclusively for business simply because he isn't working on a project but between jobs. How much are his travel expenses and were is he going?

Thanks (2)
avatar
27th Jun 2019 10:28

It's a fuching company. Of course it's allowable. But the costs are a benefit unless they would represent expenses incurred wholly, exclusively and necessarily in the performance of his employment duties.

Thanks (2)
avatar
to Vile Nortin Naipaan
29th Jun 2019 13:31

wholly and exclusively? For travel?

Thanks (0)
avatar
27th Jun 2019 11:37

Do the destinations make sense in the context of his 'special field'? Can he demonstrate what research was undertaken whilst he was there.

Thanks (0)
avatar
By Jdopus
27th Jun 2019 12:29

As with the above, I would make sure he documents what he was researching when abroad, but assuming that he is carrying on genuine research I see no reason why these wouldn't be allowable.

There are other threads on here clarifying how to treat travel expenses if there's some holiday element to an otherwise business treat so it's worthwhile familiarizing yourself with what you would need to disallow. In general though I would take the attitude of claiming for it but documenting thoroughly the business purpose of the trip as it's liable to be queried by HMRC if they do an inspection.

Thanks (0)
By DJKL
27th Jun 2019 13:58

Perhaps DJKL Limited should diversify into writing and publishing travel guides? I am away next week but think I could be persuaded whilst gone to write a short city guide to Hannover if our stopover there is to become tax deductible.

There is also the wonders of Hova in Sweden- birthplace of Stig Anderson (ABBA manager) and not much else, nearest town to our house there- publishing reviews of all the services available, paint shop, electrician, glazier, plumber plus the annual Knight's Festival and the so so pizzas etc could wangle the whole trip as company deductible ?

http://www.riddarveckan.com/index.php

Thanks (0)
to DJKL
27th Jun 2019 15:01

Why not, the only real barrier is needing to sell enough guides to cover the expenses to make the whole exercise worthwhile.

I'd read it, so you'll sell enough to cover the cost of an airport croissant at least.

Thanks (0)
By DJKL
to Duggimon
27th Jun 2019 15:22

I suspect the issue is going to be more the W,E & N and being deemed to be trading with a view to a profit , still , I have the company, it ceases offering accountancy services at the end of September and its only ongoing trade will then be the purchase, refurbishment and resale of classic model trains and Meccano, so augmenting that with a bit of journalism to mop up those really necessary holidays (oops) I mean trips abroad could be useful re its future CT bills.

Thanks (0)
avatar
By JoF
to DJKL
29th Jun 2019 13:52

As a slight aside....if you are looking for some Meccano to buy, let me know. My Dad has tons of the stuff and could be looking to sell in the not too distant future!

Thanks (0)
By DJKL
to JoF
29th Jun 2019 14:20

PM sent.

Thanks (0)
avatar
27th Jun 2019 15:32

DJKL - you could travel around the world researching and taking photograph's of the big engines so you can accurately restore the model engines. Possibilities are endless.

Thanks (0)
By DJKL
to lesley.barnes
27th Jun 2019 15:34

A poor man's Michael Portillo.

Thanks (1)
Share this content