Las Vegas. Fortunes made and lost on the spin of a roulette wheel. Which brings me to one of the most frequently asked questions by practice owners; how much of a gamble is claiming overseas travel expenses as a tax deduction?
Vision Expo West (VEW) is taking place in Las Vegas as I type so it seems topical to look at overseas travel costs. When assessing whether HMRC would challenge a practice owner for deducting the costs of accommodation, travel & subsistence, the dual aspects of distance and cost are irrelevant to their decision.
Regardless of whether a UK practitioner is travelling to a BCLA conference in Liverpool or in Hong Kong, one of the key issues is whether the costs are being incurred for the benefit of a trade. In this respect HMRC’s internal manuals state ‘it does not matter that the same result could have been achieved by different means’.
With this in mind, how would HMRC view the additional expense of business class travel to an overseas event? The case for the additional cost would be supported by the need of the clinician to arrive at a conference refreshed and fully able to absorb the clinical content and product launches for the benefit of their practice.
Regarding accommodation, it would certainly be reasonable to arrive one day before the event starts and stay on at least one night after the end of the conference. Travelling co-directors should also be able to reclaim their accommodation, travel and food costs in full for this period.
Any additional days’ accommodation costs should not be claimed. In Vegas, walking away from the tables when you’re up is far wiser than continually doubling the stakes.
Marc Bennett FCA is MD of AEL Markhams, specialist tax advisers to the optical sector.