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Posted Thu, 19 May 2022 22:00:16 GMT by dmtcapital
I am a director of an English limited company which has been appointed as a corporate director of a Hong Kong limited company. I myself have been authorised to act as the legal representative for the English company on the board of said Hong Kong company. The position naturally will incur expenses like travel, accomodation, meals etc. My question is that are these expenses allowed to be deducted for corporation tax purposes with regard to the English co? The English company isn't actually taking compensation to act as a director, it will simply provide the Hong Kong company with receipts for reimbursement (in a similar way to a natural director would do I guess). These incidental expenses will initially be borne by me (I'm the one who has to go be a representative), I'll then provide the English company with my receipts for reimbursement, who will then provide the foreign company with the receipts for reimbursement. This is a situation I've never been in before and I don't know how HMRC deals with this sort of thing, so guidance would be appreciated. I think assume that all reimbursements a director receives for business-related expenses as part of their duties are tax-free normally, just not sure if this extends to limited companies which act as directors. Will the reimbursements from the English co to me also be tax-free? Sorry if this is confusing but I hope you can follow.
Posted Wed, 08 Jun 2022 10:02:41 GMT by HMRC Admin 10
For the question  ''Will the reimbursements from the English co to me also be tax-free?'', I can advise where there is a genuine business expense being reimbursed from employer to employee this isn't reportable or taxable.
For answers to the other part of the question you will need to refer to the Corporation Tax helpline for advice, 0300 200 3410.

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