Hi I have a client who is self employed dog walker. They have grown their business to an extent that they now outsource work out to other self employed dog walkers. They do the dog walking, my client deducts a commission and pays the rest to over to them.
My client states that she provides basic tshirts and trousers for a uniform (I've seen no evidence that these clothes have a logo on but will inquire).
Can my client include these clothes as a business expense (not sure if it makes any difference that shes given them to self employed rather than employees).
Can the other self employed walker (who I may be taking on as a client as well) claim any tax relief for washing the "uniforms" even though they are not an employee of the original business?Can they also claim for waterproofs and wellies under the "protective clothing" aspect?
From what you say, the basic t-shirts and trousers wouldn't be deductable. Without having seen them, it could be that your client is simply buying everyday clothing for the walkers - albeit, that they are all similar colours.
A permanently affixed logo would change all that but to my mind, the status of being self employed is if anything, undermined by the provision of a uniform.
I know, I've had this conversation with them about the other walkers being self employed or employed. They're adamant they're self employed!
My client seems to take very little off them for commission, so I beg the question whether she should be providing them with a uniform along with covering them by her insurance and also giving them the doggy bags etc, as I think she is losing money if she does so.
If she is outsourcing her extra dogs she should have a contract with each walker or they will not be covered by her insurance no matter what she may think.
Has she actually checked she can outsource under her current insurance and that someone other than her walking the dogs is covered by the contract with the dog owners? For example, she may be a member of the National Association of Pet Sitters and it could be her contracts with the owners and or the terms of her insurance state that pets will be looked after by a registered member of NAPS, which means all her contractors must also be members - has she checked that?
Sounds like you need to talk her though the costs and see if she is actually making any money on this - so many go in with good ideas and fail on poor costings!
As to the clothing - if it is bought 'plain' it can't be claimed, if it is then logo'ed only the cost of the printing/embroidery can be claimed. If the clothing is bought and the logo put on at the time of purchase the entire cost can be claimed and the costs go to the advertising budget. As with any job, employed or self employed, the worker is expected to wear clothing appropriate to the post and to fund said clothing from their remuneration. After all, you wouldn't expect someone who works in a local office to charge the company for the clothes they wear to work so why would a pair of jeans, boots and a plain tee be any different?
Short answer - no logo = no claim.
As to the laundry, you could add a bit for use of home, how much does a load of laundry cost on average?
Thanks Unwize Owl, thats how I see it as well.
I've raised the concern over insurance with her several times over the last few months but she says she has checked and they are covered. She has issued contracts.
Regarding the use of home I was considering using the HMRC simplified expenses for 2013/2014 year, now based on the hours worked from home - so 25 to 50 hours at home is now £10 a month. Trying to establish if the self employed walkers do any hours at home, if they do I doubt it is this many hours.
