Newly Self Employed Travel Agent needs travel expenses advice

[travellady]

Hi everyone, I'm new to this forum and new to being self employed so some help would be greatly appreciated.

Being in the Travel Industry knowing and experiencing destinations and hotels/cruises etc is an essential part of my job. There are times where I will be going abroad to check out these places some of them paid by the operator/tourism board and others that I will have to pay for myself. Some of the time I will be travelling by myself and other times on a longer durations would like to have family accompany me.

Would I be able to claim the whole amount for expenses?

Also on my actual holidays would I be able to claim anything towards those? As effectively I only go to places I have never visited so I can check out the destination and sight seeing excursions.

The only reason I ask the last question is that when I was working for a hight st agent I was allowed either 3 x 75% off the cost of holiday (1xperson) or 3x75% off the cost of 1 x holiday full cost.

All help would be appreciated.

 

[MrPAYE]

The only reason I ask the last question is that when I was working for a hight st agent I was allowed either 3 x 75% off the cost of holiday (1xperson) or 3x75% off the cost of 1 x holiday full cost.

All help would be appreciated.

Hi travellady, welcome to the forum and good luck with the new venture.

From what I have understood, it seems that your former employer was simply giving you a discount on their normal prices for regular holidays which, assuming there wasn't actually any cost to your employer of giving you this discount, would not attract a tax charge on you. This is similar to retail shops giving staff a discount on clothing etc.

The issue of travel agent employees claiming tax-free trips to new destinations as part of their job etc is complex and varies depending on the specific circumstances and employee role etc.

I cannot comment on your situation however assuming you are a sole trader, i.e under self employed tax rules not PAYE as self employed taxes aint my bag. However, I would suggest some caution on seeking advice like this on an open forum as you need to ensure you are getting the correct advice for your business. Why not speak to an accountant or tax adviser who has travel industry experience - money spent now could be a wise investment.

Good luck.

 

[Zeno]

As to your family holidays, then no as this would not be wholley & exclusively for business purposes.

You would have to provide more detials regarding the other trips - is there an organised itenary with meetings & presentations? Are other members of the idustry there?

 

[travellady]

Thanks for replying.

Yes there would be an itinerary in place before travelling, ie... meeting with various hotelliers, guided tours of the hotels and its facilities and room catagories etc.. then of course travelling round the main areas to see what the resorts have to offer. once back in the UK.. writing reports on the hotels/resorts - newsletter to be sent to database on the above and promoting on the web.

If it was a FAM (familiarisation) trip organised by the tour operator/tourist board them there would be many people on the trip. If it was organised by myself then it would just be me - which is why I was hoping someone could accompany me - even if I cant claim for them would it still be ok for me to claim my expenses?

As I say sometimes these are paid for so I know I cant claim any expenses travel wise there.

 

[RAL]

In order to be able to deductible expenses, they have to wholly and exlusive for the business purpose.

You can deduct the cost of your FAM if it was a business trip. You can not deduct/claim expenses for someone who accompanys you on the trip.