I knew sooner or later I'd get asked this...
One of my clients, who's an IFA has asked me if golf lessons, kit, fees etc are allowable expenses. Now I have a funny feeling that most if not everyone will say no, BUT.... I know exactly what his retort will be 'it's so I can do business while playing' and let's face it... He's not wrong, you can do business while playing, but this niggle I have still says no.
The yanks have it much easier: http://www.golfvacationinsider.com/golf-vacation-travel/tax-deductible-10211 . Lucky gits, at least there's is clearer!
Anyone wanna gave a stab at this?
Gary
Neither the golf lessons nor the bloody stupid trousers are deductible expenses.
By IFA I assume that you mean a financial advisor rather than a financial accountant? (as the latter should know better).
Are we talking about a scenario here where he needs to play golf in order to win clients? Is it a requirement of his employment as stated in his terms of employment?
If not, where does it stop? Will he also be putting guns and shooting lessons, a boat and Yachting lessons, a horse and stabling for hunt season off against the business as any of them may result in additional clients?
The client simply wants to play golf and wants the tax system to help with the cost of such.
Of course, another approach would be for the business to pay for it and then for it to be treated as a BIK against your client (You will need to ensure that such is permitted within the clients remuneration package).
Thats my take, others may disagree,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Can I just roll on the floor laughing.. thats my answer...!
Good one, IFA client! You kill me!!
(Sean, maybe we should be allowed tax relief on gun lessons/firearms, in order to eliminate those clients... I think theres a strong argument for that!)
However.....if it is paid via the company and called 'entertainment' this has the advantage of the client thinking it will be tax deductible and then the accountant disallowing in the tax comp AND it doesn't need to go via the dla.
(Sean, maybe we should be allowed tax relief on gun lessons/firearms, in order to eliminate those clients... I think theres a strong argument for that!)
mmm, might mean that I have to replace my desks less due to forehead shaped indentations in them.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
However.....if it is paid via the company and called 'entertainment' this has the advantage of the client thinking it will be tax deductible and then the accountant disallowing in the tax comp AND it doesn't need to go via the dla.
I have put golfing subscriptions through as entertaining, as the client would take his customer to the course free if paying this... but never the lessons and equipment. Will it fly, Rob?
well if we can all see through it and laugh at the concept just imagine what an HMRC inspector would be thinking.
"Mmmm, interesting things that you're attempting to put through you're business here... Now just drop your trousers, bend over and touch your toes".
(Sound effect of the slap of latex on the inspectors shoulder).
Basically, put that through and they would be all over every little item in the books like a rash.
Michelle,
Everything that you throw off a cliff flies for a while. (lol)
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
yes the kit and lessons would not be a good idea but the entertainment aspect wouldn't be a problem IF it is genuine!! Thinking about throwing a recently acquired client off a cliff to see if he flies...he has phoned the office 3 times over the weekend and wonders if I am 'always going to be this evasive'...sent him an email suggesting he picks up his books....priced it way too cheap anyway!
The golfing fees were considered acceptable by an inspector in that case, although the client had to provide a lot of details to have it that way. He was asked for dates, client names, and how it benefited the business, but we had pre-empted him keeping all those details... so the inspector definitely had his latex on! If I remember correctly, I think it was about £800 a year he was putting through, and he said he never visited alone, always with client (he said). This client also bought every client a turkey at xmas.. LOL
