I have a client who has recently started earning a lot of money. He is a sole employee / sole director of his ltd company. And the business is now earning upwards of £100K per month in the entertainment industry / public eye.
He requires a travel bag to trasport various equipment with him inside and outside of the country. In the past (when he wasnt making much profit) he has purchased a cheap rucksack/travel bag and i have allowed the expense and claimed back the VAT. No problem.
He has now purchased new bags. 1 x designer ruckack and 1 x designer travel bag. Costing around £5000+VAT. He beleives i should include the full expense through the business as it is business related. And also claim back the VAT. Im aware of duality of purpose rules but have never dealt with these circumstances before. I am wary to claim anything i shouldnt and cant seem to find anything clear on HMRC's website.
Secondly, he is now generating income from various photoshoots. In the past i havent allowed any clothing costs as he didnt require them wholly for his trade as an entertainer. However now he is generating income from this and being expected to dress a certain way. Would part /all of the clothing purchases related to the photoshoot be an allowable expense now he is generating income from that field? I have seen case studies where models have been allowed say 40% of their personal clothes purchases through the business. (60% disallowed through CT).
Any advice on either topic would be greatly appreciated. Thanks in advance