Allowability of Creative Input Costs for Designer

Creative Input Expenses - Self Employed Artist

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I have a new self-employed client who is a successful designer of artistic products. He has previously been given advice that as long as he records his expenses and retains evidence such as the ticket and program, he may claim the expenses of visiting an arts festival against his profits for tax purposes. The reason given  for the claim is that the festival provides a primary source of research and inspiration for his designs. I've not been able find any support for such a claim in study literature; on the HMRC website nor in any online articles. The only cultural/arts information regarding tax that I can find is CT relief for certain industries (not covering his industry). In terms of R&D expenses, these are only available to companies under CT, not Self Assessment. I can see that if the festival is a venue for business meetings, then travel and sustenance costs would apply, but as for costs of the creative process, I'm at a loss. Any views and/or advice would be gratefully received!

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By Accountant A
19th Jan 2017 00:41

Not sure how a "designer of artistic products" is taxed but does the usual "wholly and exclusively" test not apply?

A good starting point is a common sense test. How much time and money is he spending on these visits? If the amounts are modest and proportionate in proportion to the earnings, I doubt that it would be challenged. If it includes 2 weeks in California then it might be. If challenged, does he have any evidence of his activities contributing to his business, eg note books where he captures the "research and inspiration".?

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