I have a client (director & only employee of ltd company) who has recently moved to Spain, he is working on his UK business whilst there (set up home office) and will travel back to his UK office for about a week per month for meetings, post etc. The sole purpose of his trips back to UK are for work. So I am wondering what expenses are allowable in relation to this travel and stay in the UK. I have listed them below and would appreciate any guidance:
1. Travel from Spain home and office to airport
2. Breakfast at airport
3. Flight to UK
4. Travel from UK airport to accommodation and office
So the place of business is the UK and he has chosen to live in a different tax jurisdiction.
There is also the obvious double taxation issue to take care of before considering expenses.
You do not state whether this is a permanent role or working on a contract (personal service company) basis?... But you do state that he has offices here which to me would indicate a normal place of work so surely even though done irregularly it is still commuting to work? (making non of the above allowable expenditure). And only travel between the UK offices and clients would be allowable travel expenses (provided that such are not in themselves deeemd permanent workplaces).
All in all your expenses seem to be assuming a one off business trip to meet clients rather than travel from home to permanent office which just happens to be in a different country.
My view which I am happy for others to prove incorrect is that non of the above would be allowable expenditure.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
This is permanent (he is a website designer, with numerous clients throughout UK).
If he is working full time in Spain (when he is there) and full time in UK (when he is here) could some of the expenses be classed as travel between offices. As both offices are part of the same company just in different countries instead of just different towns/cities in UK
If it is a UK ltd company, then the "place of belonging" is the UK. This means that UK tax/ VAT rules etc apply.
I would agree with Shaun, that travel to the UK office is commuting.
I suppose he could set up a subsidiary company in Spain (then there would be the added burden of Spanish company,tax and VAT rules), the travelling between the two could be business miles.
