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Where Taxpayers and Advisers Meet

What can I claim for on a business trip?

jtufty
Posts:34
Joined:Sun Jan 13, 2013 12:51 pm
What can I claim for on a business trip?

Postby jtufty » Sat Mar 26, 2022 8:47 am

Hi,
Im self employed and work from home. Most of my meetings happen online, but Ive just landed a possible job in London and they want me to come to their offices. Ive bought my train ticket, so Ill claim that on expenses. My friend said I can stay at his, so I wont have to worry about hotel bills. (or can I claim staying at a friends as an expense? I dont know). Subsistence I can claim for but Im sure HMRC has a limit of what you can claim for subsistence so Ill have to see that that is. What else can I claim for?
Thanks

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: What can I claim for on a business trip?

Postby bd6759 » Sat Mar 26, 2022 5:10 pm

By “claim” do you mean include as an expense in your accounts?

You include in your business accounts any expenditure that you incur in connection with the business.

For tax purposes you need to discount any expenses that were not incurred wholly and exclusively for the purposes of the trade.

Looking at the scenario you describe, and presuming this job will be part of your self-employment, what expenses will incur, solely for the purposes of your trade, by staying at your friend’s house? You cannot make up an expense: you need to actually incur it.

jtufty
Posts:34
Joined:Sun Jan 13, 2013 12:51 pm

Re: What can I claim for on a business trip?

Postby jtufty » Mon Mar 28, 2022 8:20 am

Thanks @bd6759.

Ive been reading a few articles about staying at friends accommodation udring a business trip and it seems I can claim up to £25per night. For example: https://www.contractorcalculator.co.uk/contractors_expense_staying_friends_family.aspx and https://www.thefriendlyaccountants.co.uk/overnight-business-trips/ . Although, perhaps Im a sole trader Im not able to do this?

Other than travel/accommodation/food I cant see myself paying for anything else which is "wholly and exclusively for the purposes of the trade".

AGoodman
Posts:1734
Joined:Fri May 16, 2014 3:47 pm

Re: What can I claim for on a business trip?

Postby AGoodman » Mon Mar 28, 2022 4:13 pm

Yes, you could claim £25 as an expense provided you actually paid your friend £25.

By my calculation, if you were a basic rate taxpayer, you would be approx £20 down on that plan. (Paid £25, saved £5 tax)

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: What can I claim for on a business trip?

Postby bd6759 » Mon Mar 28, 2022 9:35 pm

There are 2 problems.

1. The links refer to benchmark rates that an employer can pay an employee without requiring evidence.

2. HMRC does NOT have a benchmark rate for staying with friends or family. The contractors website makes this clear: you have misread it. The “ friendly accountant” website is simply wrong.


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