I have a client who is a physion and she was taken up by the HPC and if found guilty may have been told she could no longer trade as a physio.
The case was dismissed but client incurred legal costs
Are these legal costs allowable? I would have thought she was defending her business right to trade and as such would be allowed them. Just wondered if anyone had a different view?
Thanks
Replies (3)
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I am sure HMRC would try to argue that the costs are not allowable, but there are various cases where taxpayers have seen success.
One case that comes to mind is that of McKnight v Sheppherd (see http://www.publications.parliament.uk/pa/ld199899/ldjudgmt/jd990617/mckn... ) where a stockbroker found guilty had the costs allowed (but not the fine) when he was found guilty by the Stock Exchange.
So I would allow the legal costs and make full disclosure in the white space on the tax return.