Used personal airmiles for business travel

[peterc2609]

Hi,

I used some personal airmiles for some business travel.

How would I record/value these in my accounts??

Peter

[malvolio]

Hi,

I used some personal airmiles for some business travel.

How would I record/value these in my accounts??

Peter

How much are you going to charge YourCo for their purchase? Basically you have loaned YourCo some money, so you need to get it back at at least face value.

Golden rule - You and YourCo are two entirely different people, legally and literally. Would you use your money to help Tesco out? You haven't actually saved any money overall by doing this, so next time let YourCo buy its own tickets.

[CloudWalker]

I'd chat to your accountant before buying tickets

[peterc2609]

Too late to talk to the accountant :-(

This was last years accounts.

To be truthful, I travelled in style... I had enough airmiles for first class, but no way could the Co afford the first class fare.

[TheFaQQer]

You can value them at whatever you think is a reasonable price. You sell them to your company, declare that as income on your tax return, and pay tax on it.

Who paid the additional APD?

[northernladuk]

Isn't there a reasonableness test around expenses and first class travel in the HMRC documentation? I guess there is a big grey area in most examples so no definitive guidelines but HMRC would ask did you need to travel in style.

Also when you travelled on this flight I assume you were picking up airmiles to your personal account so you now have a mix of personal and business miles in there so technically it could be said you are spending business miles and therefor no cash value needs to be assigned.

Why is it too late to talk to an accountant? You say you are trying to record them in your accounts and I assume you haven't submitted last years yet. Or did you mean speak to your accountant before booking them?

[northernladuk]

This any use?

Contractor guide to the tax treatment of loyalty schemes and benefits

[TheFaQQer]

This any use?

Contractor guide to the tax treatment of loyalty schemes and benefits

No, it's the opposite of what has happened. That talks about accruing personal points based on company expenditure, not the other way around.

[ASB]

I just wonder whether the sale of loyalty points may be construed as income for income tax purposes. If this is the case then any advantage probably disappears anyway. Co saves CT, individual pays income tax.

I guess how those points happened to get to be accrued may be relevant. If they argely came from his previous business travel then it could be viewed differently. Treatment of these things is a bit grey and guidance changes.

In terms of accounting for it, there is currently no need for the OP to do anything. The Co did not incur a cost, all that has happened is OP now has less miles and took a flight at their own arrangement to wherever it was.

[TheFaQQer]

In terms of accounting for it, there is currently no need for the OP to do anything. The Co did not incur a cost, all that has happened is OP now has less miles and took a flight at their own arrangement to wherever it was.

I think that's what I would do - give the points to the company, and the company pays for the flight and the additional APD.

I can't see any benefit in selling the points to the company, to be honest.