Sole trader interview expenses explained

Date: 23rd July 2010

Sole traders operating in a number of UK industries could be among those to benefit from recent guidance regarding interview expenses.

Former HM Revenue & Customs (HMRC) tax inspector Bob Jones has highlighted the fact that whether or not expenses can be claimed depends on a contractor's working model.

The expert, who now runs tax training courses, told advice website ContractorUK that umbrella company contractors are unable to claim expenses incurred when travelling to interviews, while limited companies may be able to.

It follows a query on the website's Expert Answer series, which saw one contractor seek advice on whether he could make a claim on the £200 he spent travelling to an overseas interview.

Mr Jones said a claim in this case is not viable if the contractor works through an umbrella company as the costs have been incurred outside employment.

"Moreover, expenses have to be paid out of income and if there is no income (as the job has not materialised) then there is nothing against which the expense can be set," he commented.

"On the other hand, if you are working through your own limited company and the company foots the bill, then the test is less strict - namely it has to be 'for the purposes of the trade.'"

Posted Jacob Williams