Cost relating to working while travelling?

[d000hg]

This is not a question about travelling to a place of work, but working while you travel, regardless where you're travelling to. e.g. you are travelling for non-work purposes, but want to be able to use that time to work.

In this case, what's the situation with the company paying for incidentals you require in order to work? For instance, access to WiFi in a train/air-port/hotel?

What about if you're on a train which only has WiFi/power in 1st-class... or simply that has more space and less noise to enable use as a proper work environment? Similarly, using a business-class lounge at the airport/train station.
If you are genuinely doing this to work, and wouldn't consider even trying to work in cattle class, or on a bench in the airport, is it legitimate to claim the additional cost back?

Bit of a silly Friday question but is there a clear-cut answer here in terms of HMRC guidelines?

The reason I ask is I may travel by train to Cornwall to visit family. It is a 9-10 hour direct train each way which is 2 full billable days, but I wouldn't trust standard class - tables are too small, it's too noisy and you're not guaranteed a power point. Upgrading to 1st isn't something I'd normally do just to read a book in more comfort but I might prefer to work in 1st than read a book in standard... however the difference in cost is likely to be £100 each way.

[Clare@InTouch]

I think you're on shaky ground as the trip, and therefore the cost, isn't wholly business related. You're choosing to be on a train, there's no work related reason for you being there. Equally you're choosing to upgrade, there's no business reason to.

If the journey did count as business travel then you could claim the whole cost regardless of whether you choose first class or cattle class.

[TheFaQQer]

In this case, what's the situation with the company paying for incidentals you require in order to work? For instance, access to WiFi in a train/air-port/hotel?

I'd claim it - you only need it for work, so I'd have no qualms about claiming it.

What about if you're on a train which only has WiFi/power in 1st-class... or simply that has more space and less noise to enable use as a proper work environment?

Nope - the journey isn't a business expense, so I wouldn't claim it.

Similarly, using a business-class lounge at the airport/train station.

If I was in a location and I needed to work, then (as with the wifi above), I'd claim it. If I was travelling but not on business, then I wouldn't claim the cost.

I I was working while travelling, and the client agreed to it, then I would have no issue with my company invoicing them for the additional cost, though.

Bit of a silly Friday question but is there a clear-cut answer here in terms of HMRC guidelines?

[d000hg]

My business case is "MyCo will be more profitable paying £100 to earn £X00 day than paying £0 to earn £0 a day"

[kal]

My business case is "MyCo will be more profitable paying £100 to earn £X00 day than paying £0 to earn £0 a day"

If only you were travelling to Cornwall to attend an interview then it would all be allowed

[northernladuk]

How much are actually saving against the risk you could be opening yourself to. If you are talking 20 quid I probably wouldn't bother with putting through the books.

[vwdan]

If only you were travelling to Cornwall to attend an interview then it would all be allowed

*business meeting

[pacontracting]

I always use the guidelines for expenses from HMRC website:

HM Revenue & Customs: Tax allowances and reliefs if you're self-employed

'But to be allowable expenditure, it must be 'wholly and exclusively' for carrying on and earning the profits of your business. This means that your sole purpose for the expenditure must be a business purpose.'

If you are travelling by train to Cornwall but want to travel 1st to do work, your original trip is of a personal nature so probably would be challenged if you decided to upgrade. Wi-fi would be different if you need it to log into your clients systems (for example).

[philip@wellwoodhoyle]

Even less likely to be allowed if upgrading to first class gives you a free meal or drinks throughout the journey.

[GillsMan]

At a push, I could see a case for paying for the upgrade portion of the travel, i.e. not for the standard ticket, but for whatever the upgrade cost is. I do agree that it's shaky as the trip is personal, but I do agree with d000hg, spending a little to bill more is better than spending £0 to bill £0.

To be honest, my approach whenever I wonder about these borderline things is to ask "if it came to an investigation, could I justify it?".

Taking that into account, what I would do is document somewhere the reason for allowing the expense (e.g. board minutes), and then claim the upgrade portion of travel. In the event of an enquiry from HMRC, my response would be that I was travelling for personal reasons, however, there was an opportunity to bill more if I worked in a quiet coach, so I took it. I'd also point out that by spending a little bit of money to bill for two days or whatever, I'm increasing my turnover which in turn should increase the amount of tax I'll be paying to HMRC.

OK, there's a chance HMRC won't buy it, and they might charge you the tax + interest, both of which will be marginal. But if you can justify it and demonstrate a reasonable thought process, you're less likely to receive a penalty.