Legitimate business expense?

[Beetnik]

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]

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]

Tax deductible? No chance. Good team building thank you/congratulations? Very probably.

[trickywoo]

Could possibly fall into the £150 a year ‘annual party’ category.

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

[Beetnik]

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.