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Sam
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Category: Tax
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I have question with a little more detail. So the company is

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Hi Sam,I have a follow up question with a little more detail.So the company is based in the middle east and i am resident in the UK. When i travel to the Middle East for business purposes, the company covers my travel, accommodation and other sundry expenses. I use this time to meet clients and conduct meetings. After the expenses are paid, the remaining money is paid to me via the dividend in the UK(where the £3000/month)Do I have to declare any of these expenses in the UK?They are all paid direct by the company and are fully compliant with the expenses and tax systems in the country that the company is based.Best,Sion
Submitted: 10 months ago.
Category: Tax
Expert:  Sam replied 10 months ago.

Hi Sion

Thanks for your new question and asking for me.

As these expenses are all wholly and exclusively in the performance of your duties they are not liable to tax - so are you paid x expenses then its topped up to £3000 OR are you paid £x expenses in addition to the £3000 dividend

If you are paid £3000 regardless of any reimbursement of expenses than my initial answer stands, if you are paid expenses then topped up to £3000 then this will alter my answer a little

Do advsie further

Thanks

Sam

Customer: replied 10 months ago.
Hi Sam,No problem.the business makes a flat £8000 revenue a month, and my expenses are roughly £5000. this £5000 are expenses wholly and exclusively in the performance of your duties.ie to perform my duties i must travel to the middle east for 2 weeks a month, where i conduct meetings and other various business activities. the £5000 in expenses covers my hotel, flights, and subsistence while i am there.The remaining £3000 per month is the companies profit. which is paid to me as a dividend on a monthly basis.Does this help?Best,Sion
Expert:  Sam replied 10 months ago.

Hi

Then these are not business expenses these are travel to and from your place of employment enabling you then to actually perform your duties.

These are NOT allowable employment expenses

So you are liable for consideration of tax on the £8000 not the £5000

Thanks

Sam

Customer: replied 10 months ago.
Hi Sam,Thanks for that, a little more detail would be really helpful.My company is based in the UAE and my work is done in Qatar and I live in London.I think behind what you were saying in your last response was that because my travel to the middle east is between my home and my business address, it is not a business expense but the cost of commuting to work. Is this affected by the fact that my work (Qatar) and my business(UAE) are not in the same country?if yes, if the Dubai company rents an office in London where I work (and this is its only office), can i then expense the travel between London (my usual place of business) and Qatar.Thanks for your help
Expert:  Sam replied 10 months ago.

Hi Sion

Thanks for your further question

You ask for more details? What more details do you need?

Until you arrive in Qatar are you able to start performing your duties as you advise this is where you undertake all your business. so any expenses incurred getting to that place are not business expenses from which you can claim to reduce your tax is this is your regular place of work so this is deemed normal travel to and from work along with all the associated costs you incur in that 2 week stay.

So you are liable to tax consideration on the full £8000 with no deductions for this travel as it cannot be accepted as business as NOT incurred in the performance of your actual duties but in fact incurred so you can be in a position to actually perform your duties. (and this is the difference)

Thanks

Sam

The expenses are not business expenses

Sam, Accountant
Category: Tax
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Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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