Travel expenses after 24 month rule Travel expenses after 24 month rule
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  1. #1

    Nervous Newbie


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    Default Travel expenses after 24 month rule

    I'm coming towards end of 24 months working away. If I were to continue in new contract at same location I realise that travel expenses to and at this location will no longer be tax allowable and hence I will lose the current VAT and corporation tax saving on these gross travel costs. Once I go beyond the 24 months can I still pay these travel costs from my limited company (without VAT and corporation tax saving) or do I have to pay for them from 'own pocket' - which to fund would require me to pay additional dividends to myself and incur the higher 32.5% dividend tax rate? Be grateful for any advice or pointers. Thanks

  2. #2

    Fingers like lightning

    GhostofTarbera's Avatar
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    When did you know you would go over the 24 month, did you know months ago?




    Sent from my iPhone using Contractor UK Forum

  3. #3

    Should post faster


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    Quote Originally Posted by GhostofTarbera View Post
    When did you know you would go over the 24 month, did you know months ago?


    Be careful how you answer this OP

    ....where's that Admiral Ackbar pic when you need it...?

  4. #4

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    Quote Originally Posted by GhostofTarbera View Post
    When did you know you would go over the 24 month, did you know months ago?




    Sent from my iPhone using Contractor UK Forum
    At the moment it is still a possibility - so I can’t say at moment I expect to go over 24 months.

  5. #5

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    ladymuck's Avatar
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    I do believe, and am happy to be corrected, that VAT isn't the issue, it's CT. You could still put them through your LtdCo but they just won't take anything off your CT bill.

  6. #6

    Still gathering requirements...

    TheInvoicer's Avatar
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  7. #7

    Should post faster


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    Fund yourself. You are now commuting rather than doing businesses travel.

    Your accountant should be your first port of call for questions like this really.

  8. #8

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    Old Greg's Avatar
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    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

  9. #9

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    Quote Originally Posted by ladymuck View Post
    I do believe, and am happy to be corrected, that VAT isn't the issue, it's CT. You could still put them through your LtdCo but they just won't take anything off your CT bill.
    No, CT relief will still be available, but the expenses will need to be taxed as a BIK on OP personally.

  10. #10

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    Quote Originally Posted by TheCyclingProgrammer View Post
    No, CT relief will still be available, but the expenses will need to be taxed as a BIK on OP personally.
    that's interesting.

    It does reinforce the old 'ask your accountant' as you can save 19% CT, but pay income tax on the benefit.
    The alternative is to pay dividend tax on the money you pay yourself to cover the expense.
    Or do you pay a lower salary to factor in the BIK so that you still don't get into NICs..... thinking out loud, do you pay NICs on BIK anyway????

    Too complex.......

    EDIT: not that I care as it sounds like disguised permie problem.
    See You Next Tuesday

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