Advice needed from buisness/self employed person

shine166

Im taking part in an overseas show later in the year and am wanting to know if I can claim back costs from the flight or even a % of the costs ?
The flight is for buisness purposes, but ive only been self employed for 12 months and am pretty clueless on how 'expenses' work

any info would be much appreciated

wickford

Haven't you got an accountant to ask? Best bet in my book as I would imagine individual circumstances would have a bearing on this.

RodneyCharltonTrotta

Elements of the trip will be tax deductible ie when you do your tax return it will be deducted from your taxable profits.


http://www.hmrc.gov.uk/incometax/tax-allow-ees.htm#1

Dippenhall

Costs must be incurred exclusively and solely for business purposes. If you also enjoy yourself at the same time the Inland Revenue don't like it so expenses which are a mixture of business and pleasure are not allowed unless you can clearly separate expenses between personal and business. Since you are traveling purely on business I would assume its OK, just don't enjoy yourself.

InCurbsWeTrusted

From what you describe, it's fine to expense the cost of the flight, hotel and food (within reason!) back to your company. Just keep all the receipts.. forever...

LenGlover

You shouldn't have a problem with the flight if you can demonstrate legitimate business reasons for being there which it sounds as though you can. "Wholly and exclusively for business" is the HMRC mantra.

You can also legitimately offset travel and subsistence costs while you are there (fares, hotels, meals) similarly plus additional business telephone costs incurred. It could of course happen that you have to telephone a family member or friend in order to instruct them on business matters that need resolving. Reasonableness is the key. In other words don't take the pi$$!

Where it gets problematic is if you "entertain" potential customers by taking them out. Entertaining customers is emphatically NOT allowable however advertising and promoting the business is as is subsistence (meals). Once again the realistic approach is reasonableness.

Hope this helps a little.

shine166

Thanks for the help everyone Sadly I dont have an accountant, I struggle to put food on my own table at times.. let alone someone elses .
Attending is something I really need to try to do, for me the chance is the equiverlant of a YTS scholar being able to play a competitive game with his footballing heros

Jodaius

Worth mentioning that any tax-deductable expenses will only serve to reduce your taxable profits, which is the amount that your tax bill is calculated on. For example, if you are paying tax at 20%, then you will reduce your tax bill by 20% of the expenses incurred, not the whole lot.

Apologies if that's stating the obvious, but it wasn't clear from your original post.

To quote wickford, individual circumstances will have a huge effect (e.g. are you a sole trader or do you have a limited company?), so I would strongly suggest seeking advice beforehand. If you don't want to go to an accountant then HMRC themselves can be surprisingly helpful if you contact them before the event.

Miserableoldgit

From Danny Baker:

Best tax tip I ever got was from David Icke. Told me if you have voices in your head they can all be claimed as dependents

Miserableoldgit

Danny Baker ‏@prodnose
Listen, before the tax story about me breaks in the papers tomorrow, I have done NOTHING illegal. I registered my house as a museum in 2003.

Crusty54

the cost of the accountant can be offset against any profits