Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 12 Dec 2023 10:26:58 GMT by Sartaj Singh
Hi...I had to use my personal bank account to book for business travel for my private limited company as the business card didn't work whilst making flight and hotel booking. I have documents supporting that business travel reimbursement into my pvt ltd account were for business travel. I assume the business travel expenses wouldn't be considered a taxable income since I can provide documentation to support it. Please confirm
Posted Wed, 20 Dec 2023 12:48:14 GMT by HMRC Admin 25 Response
Hi Sartaj Singh,
To be deductible from the earnings of an employment an expense must be incurred wholly and exclusively in the performance of the duties of the employment.
If this is the case and providing your record keeping is good, then the reimbursement should not be treated as taxable income.
For further guidance on the general rule for employee expenses please see here EIM31664:
EIM31664 - The general rule for employees expenses: wholly and exclusively: expenditure with only incidental personal consequences
Thank you.
 
Posted Thu, 21 Dec 2023 15:30:26 GMT by Sartaj Singh
Thanks - in that case, can I withdraw the business travel expense amount and leave the rest of the amount in the business account? i hope it will not have any impact when i file my business taxes for tax year 23-24
Posted Wed, 27 Dec 2023 08:19:47 GMT by Sartaj Singh
Hi - Please can you review and let me know as I need to access that business travel amount and I want to make sure there will be no complications when I file my business return for 23-24
Posted Thu, 04 Jan 2024 12:35:18 GMT by HMRC Admin 20 Response
Hi Sartaj Singh,
Yes, presumably your personal account will show the expenses leaving the account and the business element being reimbursed.  
You have stated you have the records to support this so the reimbursement should not be treated as taxable income.
Thank you.

You must be signed in to post in this forum.