Do not read if you are too PC

[Red Wood]

Whats the craziest thing you guys have managed to put through your business.

A mate of mine bought a parachute (he sky dives for a hobby). As he had it branded with his logo he was able to write it off as a marketing expense.

 

[UK Contractor Accountant]

seen a yatch and racehorses - branded etc

 

[MyAccountantOnline]

Whats the craziest thing you guys have managed to put through your business.

A mate of mine bought a parachute (he sky dives for a hobby). As he had it branded with his logo he was able to write it off as a marketing expense.

An awful lot of stories that people come up with as to what they have ''got away with'' or what they have claimed ''against tax'' are just that, stories

Do bear in mind even when people pay for some expenses and include it in their records it doesn't mean that they are getting tax relief on it - accountants will only claim costs which are allowable for tax, they will simply disallow in the tax calculation private costs, or charge them to drawings/directors loan accounts.

 

[Bob]

A mate of mine bought a parachute (he sky dives for a hobby). As he had it branded with his logo he was able to write it off as a marketing expense.

Just in case anyone uses this thread as a source of tax advice. The cost would not probably not have been allowed had the Revenue been aware of the personal benefit. HMRC manual here

 

[Bob]

Nicola just beat me to it

 

[Red Wood]

So I can’t buy that watch with the company name inscribed on the rear in size 0.01 font?

 

[Homer J Simpson]

A business trip to Hooters hotel in Vegas is out of the question then?

 

[Red Wood]

How often are these things checked in the average SME anyway?

 

[simon field]

Every day. Twice a day sometimes!

 

[Bob]

How often are these things checked in the average SME anyway?

In your case very often as HMRC now have your card marked and will be looking at your advertising expenditure with a fine toothcomb

 

[Red Wood]

haha... Im as straight as an arrow, which is my downfall sometimes . I like to vicariously live through others!

 

[MyAccountantOnline]

In your case very often as HMRC now have your card marked and will be looking at your advertising expenditure with a fine toothcomb

 

[MyAccountantOnline]

How often are these things checked in the average SME anyway?

HMRC do carry out investigations/Enquiries to check things such as this - they can be started at any time, some people may go years without having the privilege of HMRC's attention some dont.

 

[Mike Conroy]

The only thing i put through my clients Accounts which i thought was borderline was costs for his dog and vet bills.however, he did run a pub and and he classed it as a guard dog as it had been properly trained etc. The Taxman did allow it to my surprise.

 

[Philip Hoyle]

As Nicola rightly says, a lot of obvious "non allowables" will be removed from the accounts or adjusted in the tax computations by the accountant. In the case highlighted, does this guy know for certain that his hobby was claimed for, that tax relief was given and that HMRC approved it? More likely is that it was disallowed somewhere along the line, or if it wasn't, then simply that HMRC weren't aware the true nature of the claim and havn't, so far, opened an enquiry to check it out.

HMRC don't know what's being claimed for until they open an enquiry. A lot of people think that HMRC give "tacit" approval to things that have been claimed, simply by not objecting, but the reality is that HMRC don't even look at most accounts/returns - some will trip an automated system that's looking out for pre-programmed oddities, some will be picked out at random. Because something hasn't been challenged, doesn't mean that HMRC accept it and it remains open to challenge at a later date.

I've heard it many times - the old "I claimed for it and the tax man allowed it" argument, but when asked, all that the taxman did was to send out an acknowledgement or a tax demand - that's a long way from them agreeing with what's been claimed. People then act surprised when they get a letter opening an enquiry at a later date.

 

[LancashireMan]

yep - and they have 7 years to decide to open the enquiry

 

[Pish_Pash]

A company I used to work for bought a large 20 person Hovercraft in the early 90s...as it goes legitimately to ferry their workers back & forward across the Thames! I'm sure that looked good on the tax return.

 

[Mike Conroy]

your freind with the parachute may get away with the cost of one skydive e.g fuel for the plane etc however, charging for the whole kit will raise some questions i am sure when they see it in the fixed assett register.

 

[Red Wood]

Im worried about that business lunch I expensed now!