Sole Trader - travel costs

[paynes]

Hi
I'm a "sole trader" - currently doing PA work on consultancy basis at same office in London for approx 2 weeks/month. Travel from Cornwall and incur accommodation costs in London.

I am right in thinking that as long as these costs are "wholly and exclusiviely" in respect of my work I am able to claim tax deduction? Are there any time limits or restrictions I should be aware of?

Thanks
S

[section 44]

as long as these costs are "wholly and exclusiviely" in respect of my work I am able to claim tax deduction

Correct, although the key point is whether or not you understand what wholly and exclusively means.

Are there any time limits or restrictions I should be aware of?

BIM37620 of HMRC's Business Income Manual would be worth a read.

Interestingly (given where you live and work) in Horton v Young the judge sought to put limits on what is allowable and gave the example of a person living in London but working in Cornwall as an example of where the distance would be too far.

[TDR]

HMRC tend to have varying views on what constitutes wholly and exclusively when it comes to travel costs, and are more frequently using the argument that, unless you have a fixed work base at home, your place of business would be, in your case, London and that the travel costs simply enable you to live away from work. As such, they would argue that they are a personal rather than business expense and so are not allowable.

It does depend on what your precise arrangements are.