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WayneCampbell
1st September 2010, 09:48
Hi,

I'm new to the world of self assessment tax and expense and could really use some advice on what business travel expenses are and are not taxable.


My question is:

I get business class air travel from my company but I choose to fly economy and take the difference in fair as cash.

Is this taxable?


I have been asked to invoice the company for the difference and am not sure if that is the correct procedure?



Any light that anyone could shed on this would be really useful!




Many thanks,


Wayne
elainec100@cheapaccounting
1st September 2010, 09:59
On what basis do you work for this company?
KidsBeeHappy
1st September 2010, 10:39
I had a wonderful summarisation of what constitutes business v non-business from a VAT inspector once.

If there is any element of fun - then it's not allowable :D

Honest, she really said that!!
elainec100@cheapaccounting
1st September 2010, 10:48
I had a wonderful summarisation of what constitutes business v non-business from a VAT inspector once.

If there is any element of fun - then it's not allowable :D

Honest, she really said that!!

Classic answer - love it :D:D:D:D

Fun is taxable at a rate of 98% I think ;)
KidsBeeHappy
1st September 2010, 10:59
I must admit, she did have a face that indicated that she hadn't seen any fun for several decades.
robindunne
1st September 2010, 21:14
My question is:

I get business class air travel from my company but I choose to fly economy and take the difference in fair as cash.

Is this taxable?


Answer: Yes.

Also the problem of employers NI - that'll be why they want an invoice so it doesn't go through PAYE, but they can still claim the expense against Corporation Tax.

There may be some questions to answer if the auditors pick it out.
elainec100@cheapaccounting
2nd September 2010, 06:27
There may be some questions to answer if the auditors pick it out.

Auditors????

Surely depend on company size :)
robindunne
2nd September 2010, 07:27
Auditors????

Surely depend on company size :)

Yes it does, but I would be surprised if a company sending employees out on business class air travel is small enough to be under the audit exemption. Maybe the OP could clarify?

It still doesn't negate the error of paying staff outside the scope of PAYE.