Business expenses - travelling abroad

[stuart-cap]

Hi there,

I'm hoping someone could help me. I run a media company and we publish a lifestyle magazine. A large part of this is reviewing hotels and doing travel reviews abroad to generate content for the publication.

We've only done a couple of international travel reviews and i'm unsure as to whether this would be classed as a business expense? For example, I am due to go to Marrakech on Friday - can my hotel and flight be covered and the cost of this met by the business without incurring a tax and being classed as a benefit?

Many thanks

[nikkisizer]

Hi stuart-cap,

If the trip is solely for business and there is no personal element then there would be no taxable benefit in kind for the employee and the expense, within reason, could be classed as a business expense i.e. do not try and claim for a first class flight when you can fly economy etc.

[nikkisizer]

Also, bear in mind that if a review on average takes say one day but your "business" trip lasts for five days you would find it very difficult to justify 100% as a business expense!

[King_Maker]

Hi stuart-cap,

If the trip is solely for business and there is no personal element then there would be no taxable benefit in kind for the employee and the expense, within reason, could be classed as a business expense i.e. do not try and claim for a first class flight when you can fly economy etc.

It is not up to HMRC to dictate how a business is run. If the journey is tax deductible, its mode is irrelevant - so 1st class travel can be claimed (if used).

[nikkisizer]

It is not up to HMRC to dictate how a business is run. If the journey is tax deductible, its mode is irrelevant - so 1st class travel can be claimed (if used).

If the cost of the flight is extortionate compared to the revenue earned then there would be question that the flight cost was increased to reduce profits and in turn the tax liability. To avoid triggering investigations, it is best to keep in moderation.

[King_Maker]

It is not up to HMRC to dictate how a business is run. If the journey is tax deductible, its mode is irrelevant - so 1st class travel can be claimed (if used).

If the cost of the flight is extortionate compared to the revenue earned then there would be question that the flight cost was increased to reduce profits and in turn the tax liability. To avoid triggering investigations, it is best to keep in moderation.

Whilst your advice about a potential enquiry is prudent, it does not prevent 1st class travel being validly claimed.

[wamstax]

and it could also be that a 5 day package could be cheaper than a one day business flight

[Incredulum]

and it could also be that a 5 day package could be cheaper than a one day business flight

But being cheaper does not automatically make it allowable...

[Generix]

So we can conclude that the answer is, as with all tax questions; "It depends"

[King_Maker]

So we can conclude that the answer is, as with all tax questions; "It depends"

Maybe.