# Taxi expenses - B&B allowable?



## Spear (13 Aug 2011)

Does anyone know if B&B expenses (e.g. 40 euro per night) are allowable against taxi income for a driver who lives in Waterford, but stays in Dublin c3 nights per week?  I am debating with someone I know who does this and has been advised (by a non-accountant) that B&B is not allowable.  I am not an accountant, but think this sounds totally wrong, as it is a legitimate business expense, so should be totally allowable, in my opinion.


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## Padraigb (13 Aug 2011)

If it is a case of somebody running a taxi business in Dublin but having a family home in Waterford, then I would say the answer is no.

There are circumstances where accommodation and related expenses might be allowable, but the regularity in the case you describe suggests to me, that this is not that sort of situation.


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## Spear (13 Aug 2011)

Thanks, Padraig.

It is regular, so I suppose that changes things.  

Funny though, why politicians are allowed such expenses


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## Padraigb (13 Aug 2011)

Spear said:


> ... Funny though, why politicians are allowed such expenses



I know it is not fashionable to defend politicians, but they can actually make the case that their work-base is the constituency.


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## peteb (14 Aug 2011)

taxis are restricted by their  licenced location to stop them fare shopping (e.g. dublin taxis going to galway for the races weekend) so how could it be in connection with his business as a taxi driver?


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## Spear (14 Aug 2011)

His main residence is in Waterford, but he is licensed to operate in Dublin.  Therefore he has to stay in Dublin for 3-4 nights to work.


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## Ham Slicer (14 Aug 2011)

B&B is allowable.


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## Padraigb (14 Aug 2011)

Ham Slicer said:


> B&B is allowable.



On what basis do you say that? It's equivalent to saying that travel between home and workplace is allowable, and you certainly won't get that.


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## Ham Slicer (14 Aug 2011)

Padraigb said:


> On what basis do you say that? It's equivalent to saying that travel between home and workplace is allowable, and you certainly won't get that.



Strange comparison to make.   Surely driving to Dublin would be the comparison.

If a self-employed Waterford plumber had three days work in Dublin that required a 3 night stay in a B&B would you allow that?

If not, why not?  If so, what's the difference?


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## Padraigb (14 Aug 2011)

Ham Slicer said:


> ... what's the difference?



The taxi business is based in Dublin.


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## Ham Slicer (14 Aug 2011)

Padraigb said:


> The taxi business is based in Dublin.



Irrespective, the cost of B&B is wholly and exclusively for the purposes of the trade......and can be claimed, no doubt about it.

That's the test...passed!


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## Padraigb (14 Aug 2011)

Ham Slicer said:


> Irrespective, the cost of B&B is wholly and exclusively for the purposes of the trade......and can be claimed, no doubt about it.
> 
> That's the test...passed!



No. The cost of B&B arises because the person lives a long distance from the business location, not because of the exigencies of the business itself.


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## WindUp (14 Aug 2011)

I'd agree with Padraigb-- is there an exception for Taxi drivers?


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## Ham Slicer (14 Aug 2011)

Padraigb said:


> No. The cost of B&B arises because the person lives a long distance from the business location, not because of the exigencies of the business itself.



If that makes sense to you great!  Glad you're not filing my tax return!


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## WindUp (14 Aug 2011)

Just read tax briefing 31

"
Where a business trip necessitates one or more nights away from home, reasonable accommodation costs incurred while away from home may be deducted. 
"

Hmmmm


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## Padraigb (14 Aug 2011)

This is not a business trip; it's essentially a commute.


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## Padraigb (14 Aug 2011)

Ham Slicer said:


> ...  Glad you're not filing my tax return!



I'd keep you out of trouble.


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## Sunny (15 Aug 2011)

It's not allowed. Just think for a moment how open to abuse such a system would be. You can claim it if you like but you would be pulled up on a tax audit.


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## mandelbrot (15 Aug 2011)

Sunny said:


> It's not allowed. Just think for a moment how open to abuse such a system would be. You can claim it if you like but you would be pulled up on a tax audit.



+1

It's not a business expense, it's a living expense. No way I'd be allowing it.


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