Originally Posted by
ColdWalker
I suggest you claim for the true £value on expenses, but pay the actual cost and taxes/fees yourself . Do a Dummy booking to establish the commercial value.
That's against the HMRC rules. You can only claim for costs actually incurred and money actually spent. You won't be able to justify this if there's an audit.
Originally Posted by
BAHumbug
I can't see anything morally wrong with what you're doing.
You have something that somebody else wants to buy from you and you're willing to sell it to them. It's a business transaction plain and simple. How you go about making the transaction is your business.
However, the Ts & Cs of the EC do state that you cannot sell your Avios so if you were caught you run the risk of your EC membership being revoked.
BAH
Any income that's received from the company that is not directly related to costs incurred will be treated by the HMRC as a benefit and taxed as personal income.
... said to the rest of the board I would be happy to redeem these miles for a J ticket on UA and would do do so if I received around 80% of the cost of a non-flexible J ticket in return. IIRC this was about £2,400 I received as it was about £3k for the ticket if I had bought it.
Rest of the board were happy - the company saved £600. I simply expensed it - so rather than a £3000 receipt from UA there was a £2,600 one from me personally.
Everyone won ^
Against the rules too. You can't make up your own figures here for the value of Avios. The HMRC would probably use the 0.000001p figure (or whatever is listed as the cash value). If there's an HMRC audit they will pick this up and tax you on the income the company paid you as if it were additional salary.