Are visa fees tax deductible ?

[tier1-immigrant]

Can visa fees be considered as expense and hence deducted from gross income ?

[noajthan]

Can visa fees be considered as expense and hence deducted from gross income ?

More of a question for HMRC but you could start here:
https://www.whatdotheyknow.com/request/ ... ductible_e

[Wanderer]

I can answer this.

Absolutely not since they are not 100% for the benefit of the business, there is personal advantage in it.

Don't try it on either with HMRC or you'll end up in a tax mess like so many others lately now they've started checking rigorously.

[tier1-immigrant]

I can answer this.

Absolutely not since they are not 100% for the benefit of the business, there is personal advantage in it.

Don't try it on either with HMRC or you'll end up in a tax mess like so many others lately now they've started checking rigorously.

Looking at the reference provided by noajthan the response from HMRC says it can be considered as an expense

"
The tax rules governing travel costs and expenses where the duties are
performed abroad or where the duties are performed by non-domiciled
individuals in the UK are covered in sections 370 to 374 of the Income
Tax (Earning and Pensions) Act 2003. HMRC has accepted that the costs of
a visa qualify as "travel facilities for a journey" and guidance on this
is available in paragraph 7.10 of Booklet 490. However it is important
to note that visa costs qualify only if the other conditions in those
sections are satisfied in full. I would also point out that relief under
section 373/374 is subject to a 5 year limit from the date a
non-domiciled employee arrives in the UK, so a visa renewal more than 5
years after arrival would not qualify for relief. Full guidance is
available in Chapter 7 of Booklet 490
(http://www.hmrc.gov.uk/helpsheets/490.pdf) and the Employment Income
Manual from EIM 34000 onwards
(http://www.hmrc.gov.uk/manuals/eimanual/...).

An employer can claim for a visa fee paid on behalf of a prospective
employee as a business expense in the accounts, provided the sole
purpose in paying the fee is to secure the services of the prospective
employee."


So from my interpretation of it, we can claim visa extension fees as business expense, as Tier1 G visa is work visa and its extension's sole purpose is to secure next contracts for my business.

[Wanderer]

I can answer this.

Absolutely not since they are not 100% for the benefit of the business, there is personal advantage in it.

Don't try it on either with HMRC or you'll end up in a tax mess like so many others lately now they've started checking rigorously.

Looking at the reference provided by noajthan the response from HMRC says it can be considered as an expense

"
The tax rules governing travel costs and expenses where the duties are
performed abroad or where the duties are performed by non-domiciled
individuals in the UK are covered in sections 370 to 374 of the Income
Tax (Earning and Pensions) Act 2003. HMRC has accepted that the costs of
a visa qualify as "travel facilities for a journey" and guidance on this
is available in paragraph 7.10 of Booklet 490. However it is important
to note that visa costs qualify only if the other conditions in those
sections are satisfied in full. I would also point out that relief under
section 373/374 is subject to a 5 year limit from the date a
non-domiciled employee arrives in the UK, so a visa renewal more than 5
years after arrival would not qualify for relief. Full guidance is
available in Chapter 7 of Booklet 490
(http://www.hmrc.gov.uk/helpsheets/490.pdf) and the Employment Income
Manual from EIM 34000 onwards
(http://www.hmrc.gov.uk/manuals/eimanual/...).

An employer can claim for a visa fee paid on behalf of a prospective
employee as a business expense in the accounts, provided the sole
purpose in paying the fee is to secure the services of the prospective
employee."


So from my interpretation of it, we can claim visa extension fees as business expense, as Tier1 G visa is work visa and its extension's sole purpose is to secure next contracts for my business.

No you can't. There's a difference between an employer sending and employee to work in another country and using your Ltd to finance your personal visa costs.

My bold on your statement proves my point. It's not it's sole purpose is it?

Seriously, don't mess with the HMRC, an investigation will cripple you and most likely bugger up any ILR or at the very least make it a long drawn out litigious process.

[iubus2005]

I have had a similar question -- What if you are an employee, working for a large company and living in UK? The only way I can work in this country is to have a valid work permit. The employer is not sponsoring it for me. It really hurts now given the increased fees and a family of 3-4 dependents.

[Wanderer]

I have had a similar question -- What if you are an employee, working for a large company and living in UK? The only way I can work in this country is to have a valid work permit. The employer is not sponsoring it for me. It really hurts now given the increased fees and a family of 3-4 dependents.

Only an employer can sponsor you, you can't sponsor yourself.

[CR001]

I have had a similar question -- What if you are an employee, working for a large company and living in UK? The only way I can work in this country is to have a valid work permit. The employer is not sponsoring it for me. It really hurts now given the increased fees and a family of 3-4 dependents.

Only an employer can sponsor you, you can't sponsor yourself.

@Wanderer - I think the OP means that the employer is not sponsoring the visa fees.