Q&A: Can expenses be claimed for a partner who is inactive in the business?
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Q. My wife and I are joint partners in a business, for profit sharing purposes. I’m required to do a lot of travelling on business and my wife occasionally accompanies me. As my wife is not involved in the business element of these trips (e.g. meetings) can any travel, or other expenses, be claimed for her?
A: To be allowable the cost must be 'wholly and exclusively' for the purpose of the trade. As your wife does not take any active role in the business you should be disallowing her portion of any travel costs, eating out, accommodation etc.
About the Author
Paul Newbold
Partner
After qualifying with KPMG where he gained significant audit experience, Paul joined Torgersens in 1991 and became the firm’s audit partner in 2000.
Paul employs his broad range of financial skills to provide commercial and accounting advice to a range of owner-managed businesses in the independent retail, education and professional services sectors. He also has extensive experience dealing with charities, Registered Social Landlords and not-for-profit organisations and co-operatives.
Outside of work, Paul likes to visit Eastern France and South-West German and read novels by David Morrell, Michael Blake and Harper Lee. He also likes watching films, his favourite is The Shawshank Redemption.
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