Directors travelling abroad

[Karl B.]

I have the opportunity to travel to Vietnam in January to meet with contacts regarding potential work in Vietnam and Singapore.

The meeting will likely last only a few days, but we would like to extend our stay to a couple of weeks. Is it possible to cover this extended stay through company expenses?

As directors of the company, is it permissible to travel in Business Class and claim hotel and related expenses from the company?

 

[DWS]

I vote no to claiming any of it, sounds like you are just looking to get a Company paid holiday to me!
And I am pretty sure HMRC will take the same view.

 

[BusterBloodvessel]

No, would be the answer, as your expenses for the holiday part of your trip are not a business related expense.

What I have done previously (as a mere employee rather than director, but I don't see a difference) is take advantage of the fact that I'm there, so essentially my flights are paid for. So instead of booking the return flight for 3 days, for example, I booked it after 10 days. First 3 days were business and my hotel/meals etc were expensed, the remaining 7 days I paid for everything personally but of course the flight home was paid for by the company. I think that's probably the best you can hope for.

 

[DWS]

No, would be the answer, as your expenses for the holiday part of your trip are not a business related expense.

What I have done previously (as a mere employee rather than director, but I don't see a difference) is take advantage of the fact that I'm there, so essentially my flights are paid for. So instead of booking the return flight for 3 days, for example, I booked it after 10 days. First 3 days were business and my hotel/meals etc were expensed, the remaining 7 days I paid for everything personally but of course the flight home was paid for by the company. I think that's probably the best you can hope for.

Well then you have a very generous and understanding Employer if you are merely an employee, there are not many out there that would allow an employee to do as you say!

 

[BusterBloodvessel]

Well then you have a very generous and understanding Employer if you are merely an employee, there are not many out there that would allow an employee to do as you say!

I don't particularly see why? No skin off their nose assuming the later flight was the same price (ish). The period of 'holiday' was booked off as holiday, of course!

 

[DWS]

I don't particularly see why? No skin off their nose assuming the later flight was the same price (ish). The period of 'holiday' was booked off as holiday, of course!

Because your Employer may well be in the same position as the OP of trying to explain how the trip was totally a business expense if you were also having a holiday!

 

[Karl B.]

Because your Employer may well be in the same position as the OP of trying to explain how the trip was totally a business expense if you were also having a holiday!

As a Director of my own Ltd company I can decide how long I need to stay in Vietnam. So If I split it say 3 days just businesses and the rest holiday and not claim any expenses for the holiday part is this Ok with HMRC,?

 

[Joyous]

As a Director of my own Ltd company I can decide how long I need to stay in Vietnam. So If I split it say 3 days just businesses and the rest holiday and not claim any expenses for the holiday part is this Ok with HMRC,?

HMRC specifically disallow this and have published guidance. Have a read.

 

[japancool]

Because your Employer may well be in the same position as the OP of trying to explain how the trip was totally a business expense if you were also having a holiday!

Are you saying if I have to have a meeting in a foreign country on Friday, and another one on Monday, and I go off sightseeing on the weekend, I can't claim for the whole trip as a business expense? I have to fly back on Saturday and back out again on Sunday?

 

[Newchodge]

Are you saying if I have to have a meeting in a foreign country on Friday, and another one on Monday, and I go off sightseeing on the weekend, I can't claim for the whole trip as a business expense? I have to fly back on Saturday and back out again on Sunday?

No, but if the meetings (which are necessary for your business) are on Thursday and Friday and you don't fly back on the first available flight afterwards, you may have an issue.

 

[Joyous]

Are you saying if I have to have a meeting in a foreign country on Friday, and another one on Monday, and I go off sightseeing on the weekend, I can't claim for the whole trip as a business expense? I have to fly back on Saturday and back out again on Sunday?

You wouldn't be extending your trip in this instance. HMRC are certainly not going to insist that you stay cooped up in your hotel room between meetings.

 

[perfumeryart]

No, would be the answer, as your expenses for the holiday part of your trip are not a business related expense.

What I have done previously (as a mere employee rather than director, but I don't see a difference) is take advantage of the fact that I'm there, so essentially my flights are paid for. So instead of booking the return flight for 3 days, for example, I booked it after 10 days. First 3 days were business and my hotel/meals etc were expensed, the remaining 7 days I paid for everything personally but of course the flight home was paid for by the company. I think that's probably the best you can hope for.

I did exactly the same for a business trip to China and used the return ticket via Thailand. The 3 business days in China were claimed as expenses but the 8 days hotel nights and expenses in Thailand were paid personally. I never was questioned about the claims as I had evidence of meetings and invitation to China

 

[lesliedocherty]

Well then you have a very generous and understanding Employer if you are merely an employee, there are not many out there that would allow an employee to do as you say!

This is pretty standard, I have done this with a few employers, and have friends done the same.

 

[DWS]

This is pretty standard, I have done this with a few employers, and have friends done the same.

That’s fine but the Employer should be aware that HMRC are perfectly within their rights to disallow any tax relief being claimed as per the guidance that someone posted upthread.

 

[japancool]

Book a flexible plane ticket. Pay for the hotel stay for the part of the trip that is for your business from through the ticket. Make sure your return flight is as soon as practically possible after the business part.

Now book the hotel for the holiday. Change your return date on the ticket to after your holiday, and pay the fare difference, any change fee and the hotel personally.

Then the business has only paid the expenses for the business portion and has incurred no extra expense for whatever else you want to do. I have no idea if this would pass examination, but the business is only paying for the things directly related to the business. You certainly shouldn't be expecting the business to pay for any part of your holiday.

 

[Talktime]

Drawing from my experience managing a call centre operation for a London-based firm in the Philippines, our work is linked with insurance companies that offer policies, including a complimentary legal helpline. This helpline is operated by agents who not only address immediate queries but also assess the caller's specific needs, subsequently connecting them with a solicitor who possesses the appropriate expertise.

My role necessitates frequent travel between our headquarters in London and various locations in the Far East, requiring me to maintain residences in both regions. These responsibilities come with significant travel expenses, particularly for meetings with potential insurers in the UK, as well as associated costs for hotel accommodation when necessary.

Although I cannot claim expenses for spousal or family travel, accommodation, or entertainment, there are recognised ways to account for these costs within the company’s financial records, such as downgrading travel from first or business class to economy. My employer is agreeable to this approach as long as I continue to achieve exceptional results.

Officially, HMRC does not permit claims for personal travel or holidays; you just need some creative thinking, much like how MPs and politicians approach their expense claims.