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?
Not ordinary commuting then?
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?
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?
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?
Because the travel costs would be treated as Ordinary Commuting as the contract is over 24 months?
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.
BTW - he is operating as a Limited Company.
Thank you all.
Apologies initial post was a little brief.
Shareholding at the moment is one share each between the four of them (subscriber shares) which I assume is not going to be a problem?
None of the Directors will be paid a salary
The company does not need a lot of investment but they could all put in say £10k which would be used for trading purposes, payment would be for new shares fully paid in cash