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Expenses - pushing the envelope

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    Expenses - pushing the envelope

    Hi all,

    I've been considering branching out into an ideas for a plan B I've been working on recently.
    I'm putting together an infopreneurial website about on tourism in Sao Tome e Principe (a couple of islands off the west coast of central Africa in case you're wondering).

    Basically It'll be focused on accommodation, activities, food and drink, car hire - everything you'd need to know if you were going there.

    I have visited the country on two occasions myself in the past and love the place. I don't feel I'll be able to provide enough content for my site without some in depth research which will require me visiting the islands for an extended stay.

    The question I have is (and I'm sure you've guessed it) can I expense this through my Ltd? My company is listed as an internet consultancy so I'm not exactly going outside of my company's remit here - I am putting together a website after all - but part of me is thinking that some cynical so and so from HMRC will think I'm doing this for a tax free jolly on some tropical paradise island. This is not the case. Any thoughts would be most welcome.

    #2
    If your motivation is purely commercial, then I see no problem with this. I would imagine the cost of flights/accommodation/subsistence etc will be substantial so I would suggest;
    (1) Book/pay for everything using your company name, and company bank account/credit card;
    (2) Keep records of where you went, who you met with, and its purpose;
    (3) And also keep your business files relating to this venture such as business plans, market research, execution plans etc - documents that show this is a legitimate side to your business that you are pursuing.
    2012 CUK Reader Awards - '...Capital City Accountancy, all of whom were outside the top three yet still won compliments from CUK readers for their services' - well, its not an award, but we'll take it! - Best Accountant (for IT contractors) category
    2011 CUK Reader Awards - Top 3 - Best Accountant (for IT contractors) category
    || Check us out at: http://www.linkedin.com/company/capi...ccountancy-ltd

    Comment


      #3
      Who are you trying to kid with this one? Extended stay to write an information website just because you like the place? Pull the other one.

      I imagine you already know the answer but came here looking for someone to tell you what you want to hear.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        HMRC wouldn't allow this. Not being cynical they just wouldn't. If you've been twice before why do you need to visit again? It would be far cheaper to hire someone on the Island to find out the info you want. This could be expensed but doesn't obviously get you a cheap holiday I mean fact finding trip.

        Comment


          #5
          On a more positive note I suggest you contact UKTI because they might have some sort of funding to help businesses looking to export.
          Originally posted by MaryPoppins
          I'd still not breastfeed a nazi
          Originally posted by vetran
          Urine is quite nourishing

          Comment


            #6
            Originally posted by Greg@CapitalCity View Post
            If your motivation is purely commercial, then I see no problem with this. I would imagine the cost of flights/accommodation/subsistence etc will be substantial so I would suggest;
            (1) Book/pay for everything using your company name, and company bank account/credit card;
            (2) Keep records of where you went, who you met with, and its purpose;
            (3) And also keep your business files relating to this venture such as business plans, market research, execution plans etc - documents that show this is a legitimate side to your business that you are pursuing.
            Thanks for the positive thumbs up there Greg.

            Contrary to what some of the naysayers have said, this isn't an excuse for a cheap jolly at HMRC's expense. The fact that I have been there before is irrelevant - I didn't come up with the idea until sometime after my last visit.

            Of course, one justification is that a content rich site like this will need original photographs - and a lot of them. These are not available from the likes of Comstock and even if they were - have you seen the price you pay for photos when you want unrestricted rights to them?

            There is another aspect to this site (that I'm not divulging here, though it's in conjunction with a local company on Sao Tome) that makes it a bit more than an informational website and herein lies my monetisation plan. So there is a more businessy side to this other than somebody just swanning off to West Africa to write a blog.

            Comment


              #7
              ...

              Originally posted by palatino winotype View Post
              Thanks for the positive thumbs up there Greg.

              Contrary to what some of the naysayers have said, this isn't an excuse for a cheap jolly at HMRC's expense. The fact that I have been there before is irrelevant - I didn't come up with the idea until sometime after my last visit.

              Of course, one justification is that a content rich site like this will need original photographs - and a lot of them. These are not available from the likes of Comstock and even if they were - have you seen the price you pay for photos when you want unrestricted rights to them?

              There is another aspect to this site (that I'm not divulging here, though it's in conjunction with a local company on Sao Tome) that makes it a bit more than an informational website and herein lies my monetisation plan. So there is a more businessy side to this other than somebody just swanning off to West Africa to write a blog.
              Why would you want unrestricted rights to photos when they will be single use and stuck on a web page?

              Comment


                #8
                If you want to know if the HMRC would allow this to be expensed why don't you ask HMRC?
                At least if you get something in writing from them it should give you a degree of comfort should they investigate later.

                Comment


                  #9
                  Another note

                  The question I have is (and I'm sure you've guessed it) can I expense this through my Ltd? My company is listed as an internet consultancy so I'm not exactly going outside of my company's remit here
                  What you are doing is tourism not IT. The website is a tool not the main focus of your efforts so I would say you are going out of your companys remit.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    Another note



                    What you are doing is tourism not IT. The website is a tool not the main focus of your efforts so I would say you are going out of your companys remit.
                    If he is developing content and needs to be on site, what is the problem? It might indeed invite questions from HMRC, but if he can demonstrate it as wholly, nescessarily and exclusively (or is the wording slightly differnet - you get the point) for business, then why isn't he in the clear.

                    Turn it round the other way, if someone wants to undertake this kind of business activity, how are they meant to do so if their business cannot spend its cash in this way?
                    The material prosperity of a nation is not an abiding possession; the deeds of its people are.

                    George Frederic Watts

                    http://en.wikipedia.org/wiki/Postman's_Park

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