RE: Doorwork - taxable expenses
I am afraid I am not a security company but I am a Chartered Accountant so I hope you donâ€™t mind me having a go at answering your question.
If you can be self-employed rather than an employee in any job, you should do it, as the Inland Revenue are more relaxed about allowable expenditure when trading as a sole trader.
Expenses by the definition of the revenue need to be "wholly and exclusively" The legislation disallows any expenditure not incurred wholly and exclusively for the purposes of the trade, profession or vocation. This means that the rule is only satisfied if the taxpayerâ€™s sole purpose for incurring the expense is for the purposes of their trade, profession or vocation. If you identify a non-trade purpose then the expenditure is not allowable.
However, if there is an incidental benefit, where a taxpayer incurs an expense wholly and exclusively for the purposes of their trade, profession or vocation an incidental benefit may arise. Such an incidental benefit does not, of itself, mean that the expenditure is disallowed.
Supplements - In your case, if you were absolutely adamant to the revenue that you only take your supplements to increase your size and strength so that you can work as a doorman then I think this is a good case for the expenditure being allowable.
Clothing - Unfortunately is not allowable unless it is protective clothing or it is branded. This is due to the "dual purpose" rule, where by we need to wear clothes whether we are working or not (e.g. Barristers clothing (and wigs) are not allowable!) therefore your clothing worn when working on the door is likely not to be allowable. It would have a stronger case for being allowable however if it had the pub / club name on the clothing or â€œSecurityâ€ on it because then you could argue that the clothing can only be used in conjunction with your job.
Car expenses - These are only allowable if you are a sole trader / own company and not if you are an employee. The best way to claim motor expenses is to claim the Inland Revenues standard mileage allowance rate of 40p per mile (on the first 10,000 miles).
Earpieces - Are allowable as they are wholly and exclusively for the use of conducting your business.
Phone call costs - Are allowable as well as line rental costs if you are self-employed / company owner.
Office and stationery - Are also allowable. The Inland Revenue allow a fixed amount of say Â£10 per week as office expenses if you use your home, paper, pens etc to organise your business.
I always say to my clients â€œIf you think you have a good case for claiming it, Claim itâ€, the worst that can happen is you get investigated and they prove otherwise, in which case if it is a legitimate mistake on your part you only have to pay the difference in tax. You only get in trouble with the Inland Revenue if you deliberately try and avoid paying tax. I know as I have acted as agent for clients who have had tax inspections and an open, honest approach is always more effective.
Keeping good books and records also keeps the Inland Revenue happy, if you have good books and records it shows them that you are not ignoring tax and accounting issues and again the revenue will be far more relaxed on you.
Tax avoidance is illegal as opposed to tax minimisation, which is perfectly ok.
Remember â€“ You must register as self employed with the Inland Revenue within 3 months or commencing self-employment or they can fine you Â£100!
There may also be even bigger advantages to trading as a company rather than self-employed (not too difficult to set up) and pay yourself dividends. This means you only get taxed on the money you draw out of the business as opposed to being taxed on all your profits at a beneficial tax rate.
Hope this helps.
Goals: Increase strength and size will keeping BF under control.