Tax Deductible

[Tiggy]

Hi,

If I want to start an Abba tribute band, will the cost of going to see other tribute bands to weigh up the competition be classed as tax deductible?

Also, what about the cost of singing lessons largely for the purpose of training the voice to sound more like their voice?

Many thanks

Tiggy

 

[Top Hat]

I would of thought so.

Your doing research and training don't quote me though

 

[Alpha]

Tiggy

If I want to start an Abba tribute band, will the cost of going to see other tribute bands to weigh up the competition be classed as tax deductible?

Definately not. Qualifying expenditure has to wholly and neccessarily for the purpose of running the business. The revenue would simply argue that going to a concert would be simply for personal enjoyment or at least a large element of it would be.

Also, what about the cost of singing lessons largely for the purpose of training the voice to sound more like their voice?

Highly unlikely. This would simply be putting you in a position to earn money not providing you with the tools you need to carry on a business.

 

[Joyous]

Regarding the singing lessons. If you were already a professional singer then the cost of the singing lessons would be allowable as it's quite common for actors, singers etc to use voice coaches and so forth to maintain or moderate their technique.

If however you were a nurse and decided to take singing lessons to become a singer then no. The expenditure has to be incurred for the purpose of an existing trade/profession.

Regarding going to see bands I have to agree with Alpha and say no. I can't see how you can make the "wholly and exclusively" argument stick for that.

Regards

Joy

 

[Tiggy]

Thankyou so much for your replies.


So is that a good yardstick to measure by in matter of tax, that it has to be justified 'wholly and exclusively'?

S'pose it won't work if I told 'em I never enjoyed any of the bands I went to see and had to be dragged kicking and screaming!!
:lol:
T

 

[gj]

Actually you may have a point there!

If you have never been to see an ABBA tribute band before, but do now, you would have an argument that it was wholly and exclusively. This is where tax becomes an art rather than a science. There are cases of publicans obtaining tax relief on a guard dog where they only got the dog after they had the business, but never had a dog before.

You will note the replies you have had have tended to be along the lines of "probably not" or "I don't think". The question with any of these expenses is that they have to be wholly and exclusively and that can be a judgement issue. One thing is certain - if you don't claim for it, you get no tax relief. If you do claim for it, you may get the tax relief and you may not. I do not advocate putting tings into you claim for epxenses on your tax return which are not wholly and exclusively for business but for those items you consider are wholly and exclusively, it might be worth putting them in. You could include a comment on the other information boxes in the tax returns along the lines of "such and such an expense includes travel costs of £x conducting research into competing acts".

You get the drift - if you think it is wholly and exclusively, then claim for it and be prepared to justify - but you might have to accept that the revenue will disallow it.