Agm

[wiggabaiters]

Couple of guys at work said they held their AGM's abroad, one with the Mrs who happened to be a co-director. That these AGM's happened to coincide with their favourite annual holiday destination was an irrelevant fact, according to their accountant, and they duly presented their receipts and reclaimed costs.

I guess some accountants are more leniant than others, but is this really good practice? If so who else has done it. Not sure if I am being spun a tale you see. Seeing as I'm greener than the lead singer of Scritti Polliti...

[MarillionFan]

Never heard of anyone doing it. I reckon you're being spun a line.

[The Wikir Man]

I guess some accountants are more leniant than others, but is this really good practice? If so who else has done it.

Accountants aren't "lenient" - they have an interpretation of the HMRC expenses guidelines. If your accountant says that you can expense the trip, that doesn't mean that it's allowed without becoming a benefit in kind.

Anyway, back on topic - I've not heard anyone doing it. I would be astounded if HMRC didn't view this as dodgy in any expenses audit.

[Gonzo]

I have heard stories of contractors doing this in the distant past, although I have never met one that owned up to it.

I asked my accountant and was told that because I was the only director then I couldn't have a meeting with myself.

Mrs Gonzo is from New Zealand so I asked if it would be OK to do a "business development trip" there and take her with me to work as my translator and avoid the BIK on the trip. They wouldn't have that either.

[MarillionFan]

I can legit put through travel/holiday expenses to far away lands as part of my retail business which to be fair, imports from abroad(but not for a few years). But haven't actually done it for an 'agm' (apart from legit ones)

[wiggabaiters]

Never heard of anyone doing it. I reckon you're being spun a line.

Thanks - I thought it might be another entry in the diary of self-doubt.

[Clare@InTouch]

Couple of guys at work said they held their AGM's abroad, one with the Mrs who happened to be a co-director. That these AGM's happened to coincide with their favourite annual holiday destination was an irrelevant fact, according to their accountant, and they duly presented their receipts and reclaimed costs.

I guess some accountants are more leniant than others, but is this really good practice? If so who else has done it. Not sure if I am being spun a tale you see. Seeing as I'm greener than the lead singer of Scritti Polliti...

According to HMRC:

"Before a deduction can be permitted for the cost of an overseas conference, seminar or study tour it needs to be demonstrated that attendance was necessary to carry out the duties of the employment of the person attending."

"The insertion into an itinerary of a token business element, such as a meeting that could equally well have taken place at the employer's premises in the United Kingdom, does not make the travel cost necessarily incurred"

It's blatently not a necessry business cost, so if they are claiming it then it should be declared as a benefit in kind.

[Clare@InTouch]

Mrs Gonzo is from New Zealand so I asked if it would be OK to do a "business development trip" there and take her with me to work as my translator and avoid the BIK on the trip. They wouldn't have that either.

There are criteria for taking your spouse with you:

•the spouse has some special skill or qualification associated with the employee's job that is needed on the trip, although not necessarily full time. An example is where the spouse is a competent linguist and acts as an interpreter at business meetings.

•the presence of the spouse is essential to host a series of business entertaining occasions that the employee is required to organise as part of his or her duties. It is not enough that the couple merely attend functions at which other guests are accompanied by their spouses.

•the employee's health is so poor that it would be unreasonable for him or her to travel alone.

http://www.hmrc.gov.uk/manuals/eimanual/EIM31985.htm


Depends if you realistically think you'd win an argument with HMRC about point one really!

[ChimpMaster]

It's probably easier to attend an overseas training course... preferably somewhere nice.

Or buy a duck house.