I have a client who is an ex footballer, turned football pundit / TV presenter (who also does lots of personal appearances). All work is through a VAT registered Limited company.
he has just paid for some rather expensive clothing through the business (2 x c£1500 have gone through). When I told him that would have to go to his DLA he challenged it saying he was entitled to claim for work attire. Was I right in the first place or have I lost the plot?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I can't imagine that would be allowed. If it were the case, everyone would be putting shirts,ties and trousers through their company!
I'm dying to know who it is lol
Nope! There are loads of footballers in Cheshire, plus managers, coaches and even some lovely Wags. I thought you were having a go at footy yourself in your little DVD!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Is there not a loop hole here? If one had, for instance, a black jacket embroidered with, for instance, in black 'X ltd' on the pocket. Is that then not work wear?
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
I was of the impression it has to be wholly and exclusively for business or they can't have it. I have a client who does shows and has shirts embroidered with his name and emblem, so I put them through as he is hardly likely to wear them down the pub.
If its a suit/shirt and tie then he can technically wear them to a wedding or funeral if he wanted to, so not necessarily just for work.
There is an extensive list of ostensibly private expenditure which appears to have been claimed in some circumstances, including TV presenters clothing. Obviously HMRC are going to react badly if someone is taking the mickey. If the overall impression is of luxury, fashion or opulance, the more justifications should be prepared.
Assist him make a case. Such would have been better before purchase and you could start by saying never wear it outside of the studio.
Make it a material that is particularly suited to studio lighting / cameras
Incorporate some features to aid performance of work - I can't think of what, although one presenter had the back cut short so it wouldn't ruffle the shoulders.
If client is an employee, have company logo embroidered
Add back proportion of private use.
The last may rouse some comment, but I excuse it simply by saying that it is a general rule and if 90% is added back, an Inspector will be less likely to waste his time on £150 than £1500. Careful consideration should be made though on making an admission that the item was NOT wholly and exclusively incurred for the purposes of work.
hi Tim
Interesting read! So far I havent even seen the receipt so have no idea what he has bought and he never mentioned it beforehand. Reckon he just used the wrong debit card, but Im when the receipt arrives I can have a look and see whats what and have another chat with him. Ive seen instructions about not wearing specific colours/patterns as they dont work under certain lighting etc but other than that dont think he has a set just for work but can find out. Thanks for your help, its certainly food for thought.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi Tim Im still waiting for the receipt so I can see whats on it!! I also have sensible conversations about stuff, and some down right daft ones - this was a daft one (yes dafter than one of those 'Im just on the train/at the gym/one my way to.....lets catch up later' kind of conversations!) Got until May before the year end though, haha! Interestingly that list did have a lot of 'should be deductible' kind of comments. I did love the one ''As an actor its important to keep yourself in good shape and looking good. It may be necessary for an actor to incur specific cosmetic surgery costs solely for the purposes of their career'' - I think its important for me to look better than I do so I dont scare my clients away....I wonder?????
Hope youre ok!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
