Sub-contractor expenses. Mileage on job searches - allowable or not?
HMRC made and an enquiry on client's tax return. The client claimed some business mileage travelled to construction sites and back. Also, client was without a job for a few months and done about 4k miles on job searches going to construction sites and giving out his business cards, etc. HMRC inspector says that this expenses was not allowable as a claim cannot be made for motoring expenses incurred in trying to put yourself in a position to obtain work as this fails the "wholly and exclusively" test stipulated in the Taxes Act.
I disagree with their decision as I believe this was client's self-advertising.
HMRC asked me to advise them what legislation and under what "capacity" I am maintaining this should be allowable?
What is your opinion?
- Do we have to register for VAT? 473 10
- Receipt bank 333 7
- Investment from Friend 163 9
- Self Assessment and P11D 119 4
- Director remuneration £1000 only in year. paye registration required? 337 4
- Pounds Shillings and Pence 624 23
- Company dividends 544 15
- Money laundering and can accountants be sued by clients if they make a report 164 5
- Directors Salary and Self Assessment (PAYE) 65 1
- Grammar, spelling and silly questions 903 38
- Tax Penalty overreaction 2,153 15
- Two weeks grace on self assessment where repayment is due? 150 2
- TRONC scheme 103 1
- Advice on letting a client go ? 705 13
- Capital Gains Relief 154 5
- client can't/won't pay 1,607 29
- Identity check problem 1,265 13
- A Director of a Ltd Company let a general Manager run the company, and if anything goes wrong the general manager is responsible? 204 3
- Business Set up cost 111 1
- Aged Debtor 90 1
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 876
- Underpaid VAT assessment and relation to SATR 575
- Did you realise Google will not patch android exploit ... 541
- Latest phishing scam 474
- Entrepreneurs' relief 423
- Cashback for opening business bank acct = trading income? 345
- Corporate LLP with 30 June Year end - How to record on SA800? 320
- Auto Enrolment Questions Answered 244
- Penalties- On Tax Returns (New Regime) 241
- Loan benefit after person ceases as director/employee 166