Q&A: Deducting holiday costs from business profits
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Q. Subject to any travel restrictions, I will be taking a holiday with my family in February. As I have several consultancy clients relatively near to where we will be staying, I've decided to extend the trip by four days so that I can go and meet with them to discuss business-related matters. Can I deduct a proportion of the costs of the holiday from my business profits?
A: As the main purpose of your trip is for private reasons rather than business ones there will be no relief available for the cost of the holiday. However, any additional costs that can be easily identified and separated, e.g., travel costs from your location to visit your clients, can be deducted. Ensure that you separate these out carefully in case you are asked to produce evidence at a later date.
About the Author
Martin Johnson
Partner
With expertise in advising family-owned companies on a range of tax, accountancy and business issues, Martin also has an in-depth knowledge of the automotive and property sectors. In addition, he provides advice on inheritance tax planning and financial management to owner-managed businesses.
Martin leads the firm in developing its expertise in the buy-to-let sector, advising both residential and commercial property owners on relevant tax and legislation issues.
A further element to Martin’s role is to build Torgersens’ relationships with banks, financial advisors and specialists in commercial and employment law to ensure that the firm’s clients have access to market-leading guidance.
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