How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Sam Your Own Question

Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13657
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

Hi, I am a company director and all of my earnings are by PAYE.

Customer Question

Hi, I am a company director and all of my earnings are by PAYE. I travel and entertain customers purely for business. Should I pax tax on the value of travel and entertaining ? It is on my P11D but I have never included in my tax return as I thought as it was purely business related it i surely wouldn't pay income tax ???? Please advise.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi

Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer.

The travelling and subsistence (if an overnight stay) can be claimed as an expense on your self assessment tax return as these expenses are incurred wholly and exclusively in the performance of your duties, but entertainment is not permitted (but you can claim for your meal/drink if it forms part of an overnight stay, or arises as the meeting required you to make a purchase, due to the environment it was in) but you can never claim for another individuals meal whether a current or new/potential client. See Booklet 480 (Page 74)
Book 490 Travel http://www.hmrc.gov.uk/helpsheets/490.pdf
Book 480 Expenses http://www.hmrc.gov.uk/guidance/480.pdf

The only time entertainment of any sort is permitted is when you are putting on an event for clients to come along to, and then a reasonable amount is permitted in line with the event.

I have added a link here for you which is the 490 booklet - which covers all topics regarding travel (Page 5+) and subsistence (Page 32+) and regarding entertainment


The fact its recorded on a P11d does mean that you have had the whole amount added to any salary/dividends or other income you declare on the self assessment return, so you certainly want to look into amending early year returns to claim the business elements (and this is just a claim on the employment part of the tax return, so this offsets some of the amounts as shown on the P11d)

Please do feel free to ask any follow up questions

Thanks

Sam
Customer: replied 2 years ago.
All of the entertainment is taking customers for meals etc purely to discuss business, so am I liable for income tax ?..
Expert:  Sam replied 2 years ago.
Hi

Thanks for your response

Entertainment is NEVER permitted as advised above, so yes you are liable to tax on that element of the costs shown on the P11d

Thanks

Sam
Expert:  Sam replied 2 years ago.
HI Chris

Let me know if you end any further advise on amending your self assessment tax returns for the earlier tax years.

Thanks

Sam

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions