I fly to and from Aberdeen from my base in England (Berkshire) on a weekly basis for my contract. I am going to buy travel insurance and was wondering if this is an allowed travel expense. Also assuming that it is and I also go on personal trips for holiday, should I pro rate the cover and declare BIC?
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Bump .... anyone??? -
Ordinary travel insurance excludes business use, normally. I have bought business travel insurance when required for an overseas visit on behalf of client co's. I have then invoiced the cost via the agency. You need to make it clear you are doing this before doing so. On this particular job, the agency actually provides business cover at no cost to the contractor on request as required. It will be worth asking your agency if they offer this.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Couple of things I would say..
No to pro rata. If you get something that is not wholly and exclusively then thats that. You either don't claim it or you do and pay BIK.
Does your personal insurance cover business travel? It will be business cover because you are claiming it against your business. I think some insurances can be touchy so need to be v careful.
Personally I pay for a year long multi trip cover for me and my family. I am going to use it for me if I was using it for business or not. I am not bothered about trying to scrimp and save by charging for the company and muddying the waters and it is a few hundred quid anyway so really not worth it. You only save the tax on it anyway so it's not like you are saving the whole lot.
Check the T&C's and pay for it yourself to be squeeky clean IMO.
You could of course wait for someone that knows what they are talking about to reply though
'CUK forum personality of 2011 - Winner - Yes really!!!!
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Annual non-business travel insurance is cheap anyway for most people so personally like NL I wouldn't mix up business and personal insurance.
In regards to business travel in the UK what do you need the insurance for? If it's to cover your stuff like a laptop then a household policy with a business extension and all risks cover should cover it. (Read the small print of the policy.)"You’re just a bad memory who doesn’t know when to go away" JRComment
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Was mainly thinking of costs for cancellations and delays, plud emergency medical stuff.Originally posted by SueEllen View PostComment
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According to HMRC, the "wholly and exclusively" general rule does not apply to travel expenses.Originally posted by northernladuk View Post
The general rule for employees’ expenses: wholly and exclusively
Travel expenses: general: introduction
It's also worth noting:
You can allow a deduction for the whole or part of a single expense that has a dual purpose in two circumstances:
* where an apportionment can be made between a part that is incurred wholly and exclusively in the performance of the duties of the employment and a part that is not, an apportioned part can be deducted, see EIM31661 and
* where the non-business purpose is merely incidental the whole expense can be deducted, see EIM31664.Comment
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Is insurance a travel expense? I see no mention of it in either of those links. I would argue insurance falls out of this and back in to wholly and exclusively. Business insurances and personal ones tend to be different beasts.Originally posted by lukeredpath View Post'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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I dont think medical insurance would be needed if you are staying within the UK .Comment
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Debatable, certainly, just thought it was worth mentioning. You could argue if it's travel insurance, that it is a travel expense, but you'd probably have to check that with HMRC.Originally posted by northernladuk View Post
Like you, I don't think it's worth the hassle either way.Comment
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