Business Costs

[a-okadmin]

Hi,

I have a question for all you accountants out there.

Someone mentioned to me that if I buy clothing, such as suits, to be used specifically for business meetings, networking events etc. I can deduct them as a business cost. Is this true? If so, what are the guidelines?

Regards.
Clare.

 

[Joyous]

Not true. Any clothing that can reasonably be worn “on the street” is not deductible expenditure for tax purposes. This follows on from the ruling in Mallalieu v Drummond in which a barrister tried to claim for the black suits she had to wear in court. Apparently her normal mode of dress was somewhat more colourful and she wouldn’t have been seen dead in these suits otherwise.

You have been sadly misinformed.

Regards

Joy

 

[a-okadmin]

Thanks Joy,

The person that told me is an electrician who works with many people who are self-employed. Perhaps clothing such as overalls and PPE would be tax deductible, but obviously not the items I would be wearing.

Regards.
Clare.

 

[dcaccounting]

Clare, your friend is allowed the deduction as "protective clothing". Sadly as stated is does not include all clothing.

Regards

Dean