Expenses not deductible

The taxpayer was a manager in a firm of accountants. In her 2007/08 tax return she claimed employment-related travel expenses of nearly £10 000.

She said they had been wholly necessarily and exclusively incurred in the performance of her duties of employment (ITEPA 2003 s 336(1)). They included costs for attending an overseas conference travel to visit clients phone calls made from home Companies House expenses for clients and stationery.

HMRC disallowed the claim on the basis the taxpayer decided to bear the costs voluntarily; she appealed.

The First-tier Tribunal said the cost of attending the conference which the employer had said was not a requirement of the taxpayer’s employment was not allowable. Nor were the costs relating to working from home which was also not a condition of employment.

The only expenses allowable...