A client is a producer and has employment and freelance work in a typical year although this is heavily weighted towards PAYE roles.
She completed her own 2017/18 tax return with say £50k PAYE income across 4/5 short term roles and £5k freelance income (no expenses or trader allowance were claimed).
I am told that the aim is to develop and increase the freelance work and that this is a stand alone business dealing with smaller/shorter projects. The PAYE work relates to working as a producer on a 'run' or 'series' of shows/programs to generate income whilst getting known in the relevant circles for her freelance work.
The figures are all very low but i'm interested in other's take on this regarding allowable freelance expenses. Whilst the client did not claim any in the 2017/18 return she filed herself she has sent me a claim that exceeds the £4k income for 2018/19. I would consider the expenses claimed to be fully allowable if she had been in a clear freelance role for the entire year and this was generating her main income.
For 2018/19 she had employment roles for 11 months with just one single paying freelance job in March 2019. The expenses claimed have been incurred at various times throughout the year and relate to attending film festivals, trade related workshops (one in USA) etc so no costs of sales as such for this income. The client has confirmed that she has been developing the business throughout the year (more than 10 hours per week on average)and this includes a number of projects completed free of charge which I am told is standard in this industry. I have asked her to consider wholly and exclusively and she is happy that these costs qualify as expenses of her freelance trade and do not in any way relate to her employment income.
Is it reasonable to claim these expenses in full against the freelance income (I'm thinking that the employed role is closely related)? This would generate a small loss which could be offset against other income assuming this loss relief would not be restricted in any way (she has confirmed that she has put more than 10 hours per week into the freelance side on average).
The client has a social media prescence promoting her freelance work (be it paid or unpaid projects) but no website and no PI insurance.