A well quoted case has finally finished goingthrough the courts and may have consequences for professionals who have multiple places of business including their home.

Dr Samadian (“Dr S”) lost his appeal for deductibility for travel expenses.  In summary, Dr S worked for a number of NHS and private hospitals.  HMRC took issue against his travel expenses and, in particular, disagreed that travel between the NHS and private hospitals, and between the private hospitals and home were deductible.

In his judgement issued on 14 January 2014, Justice Sales stated “Travel expenses for journeys between places of business for purely business purposes are treated as deductible.  Travel expenses for journeys between home (even where the home is used as place of business) and places of business are treated as non-deductible (other than in very exceptional circumstances of the kind discussed…).  Travel expenses for journeys between a location which is not a place of business and a location which is a place of business are not deductible.”

The interesting thing here is that it was accepted that Dr S’s home was a place of business but that travel between home and the private hospitals Dr S consulted at, also deemed to be places of business, failed the “wholly and exclusively” test (based on decisions in other cases) and was not therefore deductible.  The appeal court judge also upheld HMRC’s view that the travel between the NHS and private hospitals was not deductible.

If you think you may be affected by this judgement, please call to discuss becoming a client of PDS Accountancy.

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