HMRC treatment of international flights
Discussion
Does anyone know how international flights are treated for taxation purposes? I have been offered a freelance position that would require quite a few flights to Singapore, but depending on how the travel is taxed would be quite influential as to it's economic sense in accepting or not. Thanks 
For employees who are resident and domiciled in the UK, s370 ITEPA allows a deduction for the flights where certain conditions are met.
http://www.hmrc.gov.uk/manuals/eimanual/EIM34025.h...
However, given you mention freelance I assume you could be self employed (or are you an employee/director of your own company and therefore may qualify under s370?). I don't see any reason why similar relief would not be extended to those who are self employed but I am sure someone who deals with self employed individuals will come along to confirm.
http://www.hmrc.gov.uk/manuals/eimanual/EIM34025.h...
However, given you mention freelance I assume you could be self employed (or are you an employee/director of your own company and therefore may qualify under s370?). I don't see any reason why similar relief would not be extended to those who are self employed but I am sure someone who deals with self employed individuals will come along to confirm.
When I was working for an Aerospace company in the East Midlands, as a Freelance Engineering Guru via my Ltd Company, I did a few trips to Berlin to a sister site, to help them out.
I paid the airfare (and other trip costs) out of my business.
My arrangement with my hiring manager was that I was paid a higher hourly rate for those weeks I was in Berlin.
I paid the airfare (and other trip costs) out of my business.
My arrangement with my hiring manager was that I was paid a higher hourly rate for those weeks I was in Berlin.
LC23 said:
For employees who are resident and domiciled in the UK, s370 ITEPA allows a deduction for the flights where certain conditions are met.
http://www.hmrc.gov.uk/manuals/eimanual/EIM34025.h...
However, given you mention freelance I assume you could be self employed (or are you an employee/director of your own company and therefore may qualify under s370?). I don't see any reason why similar relief would not be extended to those who are self employed but I am sure someone who deals with self employed individuals will come along to confirm.
If it's via a Ltd, then international flights to get to/from client site would represent business expenses.http://www.hmrc.gov.uk/manuals/eimanual/EIM34025.h...
However, given you mention freelance I assume you could be self employed (or are you an employee/director of your own company and therefore may qualify under s370?). I don't see any reason why similar relief would not be extended to those who are self employed but I am sure someone who deals with self employed individuals will come along to confirm.
Yes, we would need to confirm if the OP is operating through a limited company.
If he is, then I would assume it is the company that pays for such flights, not the OP personally.
If that is the case, then the company should be able top claim these costs as legitimate business travel costs in its company accounts.
If he is, then I would assume it is the company that pays for such flights, not the OP personally.
If that is the case, then the company should be able top claim these costs as legitimate business travel costs in its company accounts.
Why would it make any difference whether the OP is operating through a limited company.
Even if self-employed the airfare would be a legitimate business expense and therefore deductible for tax.
If the customer is charged for the airfare then it would form part of t/o, if not then it just part of the cost of providing the service.
No different than the cost of running a business vehicle in the UK for example.
Oh, and a tip to the OP .....Singapore Airlines would be my recommendation, especially their A380 (business class is very, very good)
Even if self-employed the airfare would be a legitimate business expense and therefore deductible for tax.
If the customer is charged for the airfare then it would form part of t/o, if not then it just part of the cost of providing the service.
No different than the cost of running a business vehicle in the UK for example.
Oh, and a tip to the OP .....Singapore Airlines would be my recommendation, especially their A380 (business class is very, very good)
LooneyTunes said:
The OP seemed to think that the advice relating to employees was relevant to his circumstances and as a result, it's not 100% clear that he's not PAYE with the client/employer.
Exactly.Of course it's true that if he was a sole trader the same principle would apply regarding the validity of the expense for business purposes i.e. wholly and exclusively for the [purpose of the trade.
However, it wasn't clear whether the OP was running any sort of business.
People aren't always 100% sure of their status. Just because someone assumes they are "freelance" does not mean they actually are. The nature of the question indicated to me that the OP was not sure what question he was actually asking.
Now that he has clarified that he is indeed operating through a limited company, the situation is now much clearer.
Now that he has clarified that he is indeed operating through a limited company, the situation is now much clearer.
Gassing Station | Business | Top of Page | What's New | My Stuff