I have a new client who sells food supplements and health food products. They take clients to the gym to train too and provide specific fitness guidance. Can they claim for their gym membership against business income? They wear branded gear to train too.
(I hasten to add this is their version of events,!i get the feeling the want to claim tax relief on as much as possible)
I think the gym membership cannot be claimed due to duality of purpose.....it's not wholly and exclusively. In any case, tax savings aren't worth talking about!
All comments appreciated folks.
Replies (7)
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It's all down to the purpose of the expenditure
The fact that some personal advantage may be obtained from the expenditure doesn't preclude the expense being allowable provided that the only purposes for which the expense was incurred were business purposes.
You need to demonstrate a business purpose and a complet absence of personal purpose, ie that although they do make personal use they only do so because of the business membership; otherwise they wouldn't use the gym at all or would go to a different gym.
Your arguments are likely to be hindered though, by the fact that the gym memberships are likely to be personal rather than a more expensive corporate membership.