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Limited Cost Trader - Photographer relevant goods

Limited Cost Trader - Photographer

Hello,

My client is a sole director/shareholder Ltd Co providing photography services. There are approximately 5 or 6 main shoots each year with a decent fee for each so turnover is usually around the £120-£140k mark. It is a corporate client base.

The VAT Flat Rate scheme has been operated with a favourable 11% rate to date. The usual direct costs include models, make-up artists, photography assistants, location costs and the hire of mobile photography facilities and these come in at say £30-£40k. None of these appear to qualify as 'goods' for Low Cost Trader purposes.

However, clothing is purchased for the use of models and either discarded or taken by the models. This will be more than the 2% required. Can anyone confirm that this would satisfy the relevant goods requirement?

Many thanks

 

 

 

 

 

 

Replies

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22nd Nov 2017 09:12

I'm not convinced that even qualifies as a tax deductible expense of the business.

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to Duggimon
07th Dec 2017 16:16

Why not? It isn't capital, as it is used once. And I see no other purpose than a business purpose. It might be a bit wasteful, but thrift is not a condition for deductibility.

Returning to the question posed, I don't see why clothes for a photo shoot would not be relevant goods, as long as they are not capital goods and were not bought solely to meet the test.

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07th Dec 2017 16:32

What Gareth said.

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