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?