Hotel bill - VAT claim for input tax

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Snowgoat

Free Member
May 15, 2010
162
5
SE England
  • #1
    My wife was in hospital, I had to stay in a hotel nearby to be near her, but also had to run my business (internet mail order). I set up an 'office' with laptops, WiFi etc for a couple of days in my room.

    I claimed half the bill against the business and claimed the VAT. My inspector said not a chance and asked me to refund.

    Was I totally incorrect?
     
    S

    Snowgoat

    Free Member
    May 15, 2010
    162
    5
    SE England
  • #3
    Thank you.

    I thought the fact that the business couldn't exist without my input, for a large proportion of the time I was away, would be a reasonable argument. My basic essential was a simple private office with internet access.

    We used to run educational conferences, and the expenses of our hotel accommodation were always accepted on our claims - they were wholly and exclusively for business, and a half claim seemed reasonable in this case.

    A slightly grey area?
     
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    David Griffiths

    Free Member
    • Jun 21, 2008
    11,553
    3,669
    Cwmbran
  • #4
    The fact that you've only claimed half of it shows the inspector that even you think that it wholly and exclusively for business.

    Hotel accommodation for the courses and conferences is a different scenario.

    Inspectors don't tend to see grey - either black or white
     
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    David Griffiths

    Free Member
    • Jun 21, 2008
    11,553
    3,669
    Cwmbran
  • #6
    The annoying thing is that if you'd paid for the hotel room privately and booked another room/serviced office for the business, that would probably have been OK.

    Of course it would have cost you twice as much, so not really a victory, but it does show that the tax system isn't based on logic - something the lecturer told me at my first tax class many moons ago.
     
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