Travel expense - travelcard

[fyre]

Hi Everyone,

I apologize in advance if this question has already been posted, I did do a search but could not find anything on this.

I currently buy a monthly travelcard on the oystercard (as it makes sense financially) - from my own pocket. It's purely for work as I need to get bus/tube/train to get to the client office. Am I allowed to expense this through my limited company? I read that because I 'coul'd use it outside of work (ie. weekends) and that is where the tax implications rise. Has anyone had any experience with this?

Thanks in advance.

[craig1]

It's much like a monthly train season ticket, you can travel around on it at the weekends on personal stuff but you can still claim it as a legitimate expense. The HMRC guidelines do allow you to have company funded things and use them for personal life as long as the primary purpose is for work, the key phrase is "Not significant private use".

On travel, the guideline I was told many years ago by a tax accountant that HMRC will deem it acceptable for things like this is if it's cheaper to buy a season ticket for the travel duration than individual daily tickets. On trains, for most season tickets that means 3+ days per week of business travel on the ticket. Any other use outside of business travel is irrelevant in terms of "significant private use" as you're actually saving the company money by buying a season ticket.

[northernladuk]

Hi Everyone,

I apologize in advance if this question has already been posted, I did do a search but could not find anything on this.

Strange as there are quite a few posts on exactly this.

https://www.google.co.uk/search?q=oy...sm=93&ie=UTF-8

[Jessica@WhiteFieldTax]

It's much like a monthly train season ticket, you can travel around on it at the weekends on personal stuff but you can still claim it as a legitimate expense. The HMRC guidelines do allow you to have company funded things and use them for personal life as long as the primary purpose is for work, the key phrase is "Not significant private use".

On travel, the guideline I was told many years ago by a tax accountant that HMRC will deem it acceptable for things like this is if it's cheaper to buy a season ticket for the travel duration than individual daily tickets. On trains, for most season tickets that means 3+ days per week of business travel on the ticket. Any other use outside of business travel is irrelevant in terms of "significant private use" as you're actually saving the company money by buying a season ticket.

Concur, just keep some backing info on journeys used. In theory, I suppose HMRC could ask for logs, you can print off logs for Oyster AFAIR, but in reality that would be unusual.

[Wanderer]

I currently buy a monthly travelcard on the oystercard (as it makes sense financially) - from my own pocket. It's purely for work as I need to get bus/tube/train to get to the client office. Am I allowed to expense this through my limited company?

Potentially, yes. Have a read of the Contractor Expenses and in particular make sure you understand the "24 month rule" and if it applies to you or not. I don't think there are any tax implications to using the season ticket for personal use at other times, so don't worry about that.

You may also be able to claim £5 for lunch (and potentially other meals) taken at work or while travelling.

I read that because I 'coul'd use it outside of work (ie. weekends) and that is where the tax implications rise. Has anyone had any experience with this?

Generally speaking an expense may be borderline if there is some "duality of purpose" and if the expense is not "wholly and exclusively" incurred in the course of your business. In reality though there are exceptions to this.

For example, many people clam for a PC/laptop/iPad for work but they also make substantial personal use of it and this is often allowable.

You can also claim a mobile phone provided the contract is in the company name and paid by the company rather than you personally.

Do you have an accountant? If not then you will need one sooner or later so you should get one and have a chat to make sure you aren't paying more tax than you have to.

[DirtyDog]

Concur, just keep some backing info on journeys used. In theory, I suppose HMRC could ask for logs, you can print off logs for Oyster AFAIR, but in reality that would be unusual.

Oyster don't go back too far - one year I thought I'd leave it until the end of the tax year and download everything in one go, and most of the journeys had gone.

So if you are planning on downloading a record of the journeys, then do it regularly.

[MPwannadecentincome]

Potentially, yes. Have a read of the Contractor Expenses and in particular make sure you understand the "24 month rule" and if it applies to you or not. I don't think there are any tax implications to using the season ticket for personal use at other times, so don't worry about that.

You may also be able to claim £5 for lunch (and potentially other meals) taken at work or while travelling.



Generally speaking an expense may be borderline if there is some "duality of purpose" and if the expense is not "wholly and exclusively" incurred in the course of your business. In reality though there are exceptions to this.

For example, many people clam for a PC/laptop/iPad for work but they also make substantial personal use of it and this is often allowable.

You can also claim a mobile phone provided the contract is in the company name and paid by the company rather than you personally.

Do you have an accountant? If not then you will need one sooner or later so you should get one and have a chat to make sure you aren't paying more tax than you have to.

Clothes are another general exception it seems - I had to hire a tux for a business networking event but clothes are not allowed as a business expense claim.

[LisaContractorUmbrella]

Clothes are another general exception it seems - I had to hire a tux for a business networking event but clothes are not allowed as a business expense claim.

Yep quite right BIM37910 - Wholly & exclusively: expenditure having an intrinsic duality of purpose: Clothing

[TheCyclingProgrammer]

Two things:

* "Wholly and exclusively" - which forms part of the general rule for employee expenses - explicitly do not apply for business travel expenses (including travel to a temporary workplace within the 24 month rule). Duality of purpose is not an issue here.

General rule:
http://www.hmrc.gov.uk/manuals/eimanual/eim31660.htm

Travel expenses rules (note the absence of wholly and exclusively):
http://www.hmrc.gov.uk/manuals/eimanual/EIM31805.htm

* HMRC helpfully outline the rules for company provided travel cards in their manual. In short: the claimable amount is the lesser of a) the travel card or b) the total cost of the journeys if they were paid for individually. In other words, if the travel card costs less than the equivalent journeys, its fully allowable, if its not, the maximum allowable cost is the cost of the journeys and the excess is a benefit.

Read this:
EIM16065 - Vouchers and credit tokens: transport vouchers: travel cards: overview

[TheCyclingProgrammer]

Oyster don't go back too far - one year I thought I'd leave it until the end of the tax year and download everything in one go, and most of the journeys had gone.

So if you are planning on downloading a record of the journeys, then do it regularly.

FWIW, if you register your Oyster online, you can have journey reports emailed to you on a monthly basis in either CSV or PDF format.