SE31935 - Travel expenses: general - directors' travelling expenses - Extra-Statutory Concession A4 - directors who are acting on behalf of a professional practice

Professional people such as solicitors sometimes become directors of companies on behalf of their professional practice and for no other reason. In these cases they will have no direct or indirect financial interest in the company.

Any expenses that are incurred in carrying out his or her duties by a director who is acting on behalf of a professional practice are treated for tax purposes as expenses incurred by that practice. The expenses are deducted under Schedule D in computing the practice profits.

Extra-Statutory Concession A4 applies if the director is paid travelling expenses. If the travelling expenses are reasonable the director is not assessed on the payments under Schedule E, provided that the practice does not deduct the expenses under Schedule D.

This part of the concession applies to 1998/99 and later years in the same way that it applies to 1997/98 and earlier years.

The application of this part of the concession is illustrated by example SE31940.