Samadian v Revenue & Customs [2013] UKFTT 115 (TC) (28 January 2013)

Samadian v Revenue & Customs [2013] UKFTT 115 (TC) (28 January 2013)

The appellant had multiple places of business, including his home and private hospitals. Travel between home and private hospitals was not deductible because, despite the home being a place of business, part of the object of the travel was to maintain a private residence separate from the business locations, failing the 'wholly and exclusively' test. Travel between NHS employment locations and private hospitals was also not deductible, as it was to put the appellant in a position to carry on his business, not in the course of business itself. Only travel to visit patients at their homes or care facilities was deductible as it was integral to the business activity.

Citation
[2013] UKFTT 115 (TC)
Parties
Appellant: Samad Samadian; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
28 January 2013
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal substantially dismissed in principle
Legal Topics
Income Tax, Self Employment, Deductibility of Expenses, Travel Expenses, Wholly and Exclusively Rule
Tax Law Income Tax Self Employment Deductibility of Expenses Travel Expenses Wholly and Exclusively Rule

Case Brief

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Parties

Samad Samadian

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether travel expenses between home, NHS hospitals, and private hospitals are deductible as incurred wholly and exclusively for the purposes of self-employment

Ratio Decidendi

The appellant had multiple places of business, including his home and private hospitals. Travel between home and private hospitals was not deductible because, despite the home being a place of business, part of the object of the travel was to maintain a private residence separate from the business locations, failing the 'wholly and exclusively' test. Travel between NHS employment locations and private hospitals was also not deductible, as it was to put the appellant in a position to carry on his business, not in the course of business itself. Only travel to visit patients at their homes or care facilities was deductible as it was integral to the business activity.

Court Disposition

Appeal substantially dismissed in principle

Orders

  • No deduction allowed for travel between home and private hospitals.
  • No deduction allowed for travel between NHS employment locations and private hospitals.