Wholly, exclusively and necessary

reader

Hi guys

I've just started revising for PTC for the 03Dec exam!!!

I was just wondering what was the difference between wholly and exclusively. To me they seem like the same thing.

Thanks

PGM

reader wrote: »

Hi guys

I've just started revising for PTC for the 03Dec exam!!!

I was just wondering what was the difference between wholly and exclusively. To me they seem like the same thing.

Thanks

Just means 100% of it and for 100% of the time.

reader

Thanks a lot, PGM

I know I am being incredibly intellectually lazy but can you give me an example of where something is wholly allowable but not exclusively allowable or vice versa?

Thanks

PGM

Maybe work clothes, as they are for work but you need clothes anyway.

reader

Good example, PGM.

I think work clothes are normally allowable, e.g. uniform, overhauls, etc, because the clothes would be deemed to be wholly, exclusively and necessary for business.

Whereas casual day to day wear is normally not allowable because it's not exclusive to business.

I guess that something has to be wholly for business and necessary for business, and then the client has to be made aware that it should only (exclusively) be used for business (unless they want a proportion of the expense added back).

When you think about it, the wholly, exclusively and necessary rule is quite strict. It's a surprise that any expenses end up being allowable.

Although I guess that rule is just a guide as oppose to a strict law.