An individual has trained in a discipline and undertaken voluntary work in that field and is now qualified and able to take on a first fee-paying client. The business will be slow to grow so voluntary work (in two widely-separated geographic areas) will continue in order to ensure that the minimum number of hours are worked to satisfy Continuing Professional Development (CPD) requirements. The self-employment depends on membership of the professional body so meeting their CPD requirements is essential.
My concern is that the significant expenses (travel from normal place of work, subsistence, overnight accommodation, etc.) associated with the voluntary work are not directly related to any specific income. In the absence of sufficient chargeable hours, the voluntary work is required to allow this self-employment to continue so does that make the associated net costs allowable per the "wholly and exclusively" criterion?
The charities for which the voluntary work is performed either do not reimburse expenses at all or (in the case of one in the geographic area near the taxpayer's usual place of business) pays mileage at less than AMAP rates. Some permit their qualified volunteers to take on clients as private clients when time-limited charity-support is ended. Losses are anticipated for the first couple of years as a result of these heavy expenses (if allowable) and ongoing training costs but subsequent commercial profit is realistically foreseen. Are the net costs allowable?
Professional insurance was (per rules of professional body) required to cover pre-qualification voluntary work but can that only be charged pro-rata the self-employed period or could the full cost be claimed as pre-startup expenditure along with the printing, advertising and membership fees of professional body, etc.? Not much cash involved but I'd like to be clear on the principle.