Accounting Q: Event Costs On Accounts?

[ChrisS]

Ive been invited as a guest to a motoring event because of one of my websites but was wondering about the costs related to it for the whole day.

It will take up my whole day (150 miles each way just to get there) and so I expect to have expenditure on petrol & food/drink for the day, is it ok to just keep the receipts for what I buy and have them as a taxable expense?

This may sound like a right dummie question to some but this is the first time ive been to an event for business purposes so am not really sure!

[monaghan]

Anything that is a legitimate expense can be claimed, if you're going purely for a "jolly", then you would have difficulty justifying, however if it is a business meeting you should be fine. I would also keep a copy of the invite and reference to the relevant website (for the unlikely event that you had to justify expenses in an audit).

Might be worth ordering a few additional business cards / fliers / promo toys and taking these with you.

[ChrisS]

Thanks monaghan, that was the perfect answer!

It is purely for business but I'm pretty sure I will enjoy the day as well, win win situation!

[frauke]

I presume you have already been to the event.

But I will mention, for the travel costs - if you are using your personal car. Rather than keep the petrol receipts, and just claim those - you can make a "mileage claim". The first 10,000 business miles you do in any tax year you can claim 40p a mile, and 25p a mile thereafter. Its a lot simpler, easier - and helps to provides additional justification of the overal claim, as you have to record the details (miles done, to where & why) to claim the 40p a mile.

[ChrisS]

No ive not been yet (go the 11th), it is my personal car, because of the circumstances that does sound a better way to do it.

Im self-employed, does the mileage allowance form part of the tax return? Or do I have to apply to HMRC separately to make a mileage claim?

[frauke]

Originally Posted by ChrisS

Im self-employed, does the mileage allowance form part of the tax return? Or do I have to apply to HMRC separately to make a mileage claim?

The claim you make is for paperwork purposes - so if the HMRC ever query the amount you have proof. Also if you use an accountant, it certainly makes it easier for them.

It goes on your tax return as a business expense - again, it just makes it easy to fill the form in when it has to be completed.