Traveling first class

[samuel5]

So there is business class and first class on some airlines.
Is it ok to fly first class and put it through the bizo or would HMRC frown upon it?

Because if I booked a massage and a really expensive meal for myself through the bizo obviously they would slap my wrists, but this is essentially what first class is compared to business class.

Just wondering

 

[Gordon - Commercial Finance]

What is a bizo?

 

[samuel5]

Bizo means business, sorry had a drink and I’m talking my Essex slang!

 

[Adam93]

Whether an expense can be deducted from profits or not has little to do with the amount paid. It is all about the reason you are incurring the expense (wholly & exclusively, duality, legislation etc).

You cannot compare travel to a massage and expensive meal, they are two different types of expenditure.

The answer will also depend on whether you are a sole trader, or trade via a limited company.

To be blunt, if you can afford first class, you would be well advised to engage an accountant (which should be much less than a first class ticket on most airlines).

p.s. I think 'bizo' is some sort of slang for business...

 

[KM-Tiger]

Do people from Essex fly first class? If you do maybe you can sell your story to a newspaper?

 

[JEREMY HAWKE]

I thought it was one of those Rapper chaps

Lethal bizo

 

[samuel5]

The answer will also depend on whether you are a sole trader, or trade via a limited company.

To be blunt, if you can afford first class, you would be well advised to engage an accountant (which should be much less than a first class ticket on most airlines).

p.s. I think 'bizo' is some sort of slang for business...

Yes a limited company and I already have an accountant but just thought I would ask here.
I can’t afford first class but just traveled to HK in business which is more than nice enough. It got me thinking if HMRC would tell you that business class is more than suitable and first class is taking the p*ss!

What about putting a watch through, we all need to tell the time?

 

[JEREMY HAWKE]

A watch you have got to be having a turkey mate

They won't let you claim for a a rolex
The only way you could claim for a watch is if you are a watch dealer buying stock

I just see what direction the shadows are facing in relation to the sun ! Why do you need a watch ?

 

[UK Contractor Accountant]

Go for an Apple Watch - its a computer!

 

[JEREMY HAWKE]

Go for an Apple Watch - its a computer!

Many Thanks for your free advice

What would I do with one of them it won't sync with my BlackBerry !

 

[UK Contractor Accountant]

I am sure that there other smartwatches that do!

 

[KM-Tiger]

I can’t afford first class

Keep your eye on the 'sales' that the airlines have from time to time.

Sometimes first is only a couple of hundred more than business. But strike quick if you see a bargain, they usually disappear within a day.

 

[Clinton]

To be blunt, if you can afford first class, you would be well advised to engage an accountant...

Awesome reply.

TBH, I'm cross with myself for not coming up with that before you did.

 

[Adam93]

What about putting a watch through, we all need to tell the time?

your company can buy you anything. As long as your report it on your P11d, pay income tax and class 1A NIC on it.

A watch would be a taxable benefit for the employee, unless less than £50.

if you have an accountant, you should really ask them, not a free Internet forum where advice given is often incorrect.

 

[Bob Morgan]

Do people from Essex fly first class? If you do maybe you can sell your story to a newspaper?

They fly from Bas Vegas International Airport in Basildon. Chelmer Airlines is the National Carrier for Essex! Flight crew still wear 'Traditional Shell Suits!'

 

[UK Contractor Accountant]

wouldnt report an applewatch on p11d - covered by the exemption for tech.

 

[Adam93]

wouldnt report an applewatch on p11d - covered by the exemption for tech.

Any statutory references/HMRC manual to back this claim up?

 

[UK Contractor Accountant]

My opinion - its tech like ipads/pda's

Some of these features include calendar alerts for business appointments, business related texts, business calls, work email and social media for your business. Therefore, HMRC guidelines would appear to categorise the Apple Watch as a Tax Deductible Expense.

Do you have references that is not tech covered by the exemption?

 

[samuel5]

There you go, see I have created a discussion!
To all the mutes who say to speak to a professional and not post, you could say that to anyone who posts a question of interest here!

Of course I will speak to them, but now I have gained knowledge of the form P11D, Basildon airport and Essex people wearing tracksuits

 

[UK Contractor Accountant]

Because if I booked a massage and a really expensive meal for myself through the bizo obviously they would slap my wrists,

no they wouldnt - little known exemption for trival benefits!

You get the stickler accountants that say you cant put anything through your company that has a sniff of private benefit without p11d/paye consequences and then there are other Accountants that play the game!

 

[Adam93]

My opinion - its tech like ipads/pda's

Some of these features include calendar alerts for business appointments, business related texts, business calls, work email and social media for your business. Therefore, HMRC guidelines would appear to categorise the Apple Watch as a Tax Deductible Expense.

Do you have references that is not tech covered by the exemption?

the provision of one mobile phone is exempt - s319 ITEPA 2003.

The equivalent provision that applied to computers was repealed in 2006.

HMRC accept if an employer provides an employee with a computer (no mention of ‘tech’) and there is ‘insignificant’ private use, no benefit in kind will arise. If you have a watch on 24-7, there will be a benefit in kind. https://www.gov.uk/expenses-benefits-computers-loaned-to-employee/whats-exempt

As for it being a tax deductible expense for the employer, I agree. It’s that taxable benefit that’s the issue.

 

[UK Contractor Accountant]

(no mention of ‘tech’)

exactly. I would argue the case.

22.5 Where apparatus is clearly designed or adapted for the primary purpose of transmitting and receiving spoken messages and is used in connection with a public communications service, the fact that it can also be used for other functions will not prevent it from falling within the meaning of mobile phone. This means that smartphones will fall within the meaning of mobile phone.Certain devices that were primarily designed and adapted as Personal Digital Assistants (PDAs) in the past have evolved over time so that many modern consumer PDAs are likely to be smartphones. This is an area of rapidly changing technology and it is not possible to be certain about the application of the definition of mobile phone to future or new forms of smartphone.

Thats what you do for your clients - argue the case!

 

[Adam93]

If you're arguing it is a mobile phone, it won't be exempt if the employee already has one mobile. The only way it would be exempt if you argued it was a 'computer' and there was insignificant private use (or the employee doesn't have an employer provided mobile phone).

 

[STDFR33]

A mobile phone is exempt under ITEPA 2003, s319.

Tablets, even ones with a sim card would need to fall within the s316 exemption.

EIM21613 is also helpful.

 

[Adam93]

A mobile phone is exempt under ITEPA 2003, s319.

Tablets, even ones with a sim card would need to fall within the s316 exemption.

EIM21613 is also helpful.

The important word in s.319 is 'one'.

 

[STDFR33]

The important word in s.319 is 'one'.

Indeed... For a mobile phone. And you can elect which one is exempt.

 

[TheCyclingProgrammer]

You can have more than one phone, you’re only allowed one under the exemption for phones provided for both personal and business use. Additional phones can be provided if they meet the general wholly, exclusively and necessarily rule.

 

[GURUCLOUD]

Some companies have a policy that is strictly 'business only' and never 'first class' which creates odd moments on pricing where the first fair is equal or even less than business!