I'm afraid it's another basic question for those who have clients in the beauty industry i.e hairdressers, beauticians.
I have a new self employed client in the beauty industry and I have just recieved their profit and loss account for the prior year from their previous agent. There are couple of expenses included in the prior year accounts which I am not certain should be included so just want to confirm a couple of things as I think I might be loosing my marbles.
1. Can the client claim a deduction for motor expenses where they go to the same place of work every day even though they are self employed - I thought you couldn't?
2. Allowable clothing is applicable if the items are only suitable for the trade i.e can't really wear as 'home' clothes or if the item has a trade motif on it?
3. There is no flat rate expense claim for subsistence is there? I certainly have never seen one included before for a self employed individual. I have only seen it for employees working away from their normal office i.e at a clients?
Replies (7)
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Just a trim
Motor expenses may relate to visiting customers' homes as well as travel to work. If only between home and workplace, it isn't deductible.
Suitable clothing (or protective) is allowable. (Hard to define)
Subsistence claim would only be for ADDITIONAL cost over normal living expenses. No fixed amount.
Costs
Motor expenses may also be incurred travelling to suppliers, bank, etc.
Clothing: the usual protective or logo'd clothing
Subsistence: never had to claim for these professions, but possible I suppose.
Self-employed expenses
Re 'settingupalone' comment: Two year rule is applicable only to employees and not relevant to self-employed.
Motor expenses - I agree with you - I believe there was a recent case invvolving a market trader which confirmed this
Clothing - see Mallalieu v Drummond - as mentioned above claim only allowed for trade specific items eg overalls
Subsistence - again unlikely unless working away from normal base - see BIM 47705
Cleaning?
I agree with the comments above but have you considered a modest estimate for cleaning the towels / clothes etc. These often have to be done every day.
Subsistence
I would not have thought subsistence would be allowable unless they had to travel away from home. Could this possibly cover a multitude of things i.e washing and drying of towels and uniforms, magazines for the salon, refreshments for the clients etc.
One of my salon clients explained that she had to replace uniforms/protective clothing on a regular basis as they got splashed and spoilt with the chemicals they use - they also need to look the part - i.e fit in with the salon brand. In those circumstances I would have thought specific clothing for work use would be acceptable.
Motor expenses - it's already been said above - home to work is not allowable but travel to clients or for other business purposes i.e bank, suppliers, trade shows etc would be allowable.