Well, I am – volcanic ash cloud pending of course – off to France with the wife and kids for a week of complaining about the lack of wireless internet connection preventing me from checking my emails whilst everyone else is relaxing.
I shall of course continue to be working Monday to Friday 9 til 5 whilst I am there (!) and can surely claim the entire cost of my trip as a legitimate business expense?
Unsurprisingly not.
As far as Her Majesty’s Revenue & Customs (HMRC) are concerned it is my intentions for the trip that determine whether I have a legitimate claim to a deduction. They will want to know why I am going to France, who I am going there to see and what business I will be conducting whilst out there. Just because I will be working whilst I am there it does not follow that my trip has a business purpose.
If I was going to meet potential business contacts, perhaps view some possible premises, have talks with some potential suppliers then I would have a legitimate argument.
Many people will combine a business trip with a holiday. It makes perfect economic sense to do so and, in my experience, HMRC have been amenable to allowing a reasonable apportionment of the total costs of the trip in these circumstances.
So what is reasonable?
Well, you should certainly exclude the costs relating to any family members or other travelling companions unless they too will be there for business purposes. After that, you are probably best apportioning on a time basis. E.g. if you plan to get the business meetings and site visits out of the way in the first three days and then spend the next 7 days relaxing, 30% of the total costs would be a reasonable apportionment.
And what costs do I include?
Stick with flights, accommodation and meals. Exclude anything that is solely private e.g. entrance fees to amusement parks but do include anything (without apportionment) that is solely business related e.g. entrance fees to a trade show or exhibition.
Remember HMRC have a statutory right to disallow in full any costs which cannot be split with reasonable accuracy between business and personal use. If you get too carried away with your expense claim then you risk all of it being disallowed.
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