Legitimate business expense?
Legitimate business expense?
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Discussion

Beetnik

Original Poster:

577 posts

214 months

Friday 21st January 2022
quotequote all
What's the panel's view? (More importantly what's HMRC's!)

Employed trainees attend Uni as part of their training. Graduation is a condition of their continued employment. They've graduated and in respect of the ceremony have asked us to expense gown hire, train fares or mileage, and overnight accommodation. Hard for me to see it classed as an essential business expense but could be seen as teambuilding?

What's the tax position?

Eric Mc

125,724 posts

295 months

Friday 21st January 2022
quotequote all
Not allowable.

Not part of the essential training costs.

HMRC's definition of an allowable cost is one that was incurred wholly and exclusively for the purpose of the trade.

Mr Pointy

13,409 posts

189 months

Friday 21st January 2022
quotequote all
Tax deductible? No chance. Good team building thank you/congratulations? Very probably.

trickywoo

14,220 posts

260 months

Friday 21st January 2022
quotequote all
Could possibly fall into the £150 a year ‘annual party’ category.

I’d fully agree that it would not be a normal expense.

Beetnik

Original Poster:

577 posts

214 months

Friday 21st January 2022
quotequote all
Thanks for confirming what I believed to be the position. Of course I'll now be 'Mr Scrooge' once again - their manager has set a hare running...

Maybe they'll have to do with a (subject to tax & NIC) bonus instead.