Overseas Expenses

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1. Interestingly, there is a statement of practice (SP) issued by the Inland Revenue, SPA16 which allows the whole of the cost of living expenses including accommodation, food and drink from taxable earnings which has been incurred while abroad on business purposes. Private expenditure, for example, on holidays taken in the course of a business trip will not be allowed.

2. Valued Added Tax (VAT) incurred on overseas business expenditure:-

The possibility of recovering VAT incurred on expenses in other European Community countries is often overlooked. A VAT registered business in one EC country can make claims for VAT incurred elsewhere within the E.U. Refer to VAT Notice 723A.

elsewhere within the E.U. A new electronic system was introduced from 1st January 2010 to recover the VAT incurred directly from that member state via HMRC.

Please click here for further details on HMRC website.


Click here to email Tim Dauncey for further information or if you would like to ask him a question.

This material provides only an overview of the regulations in force and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.