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Can this be claimed as a genuine expense

piratepirate Trusted RegularRegistered Posts: 469
Hi there

Client has a limited business.
In his spare time he races bikes
He advertises his business on a number of the bikes. He owns the bikes
He gets quite a lot of new business from this advertisement.
Obviously he has paid for the cost of creating the pieces that go on the bikes.
Additionally he pay to advertise at the race HQ

Can he claim for the cost of the creating the pieces for advertising - since its his own bike
secondly can he submit an invoice for the advertising on these bikes. (as if he was advertising on someone elses bike he would have to pay an invoice). Since he is the director I am not sure about this one.

Many thanks

Comments

  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    The company can pay for the materials purchased to create the adverts and to advertise at the race HQ.
    If the company pays the director personally to advertise on his bike this is fine but the director will then be receiving personal income which will need to be declared on his tax return - probably counter-productive.
  • piratepirate Trusted Regular Registered Posts: 469
    Thanks Jodie

    was sort of thinking this.
  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    I hadn't thought about this;

    So for all the people that have sponsorship for their motorsport or whatever hobby. They should show all this money given to then as income?

    I bet this often isn't the case; what if they argue its not income, it was given for a specific purpose for which I spent the money...
  • coojeecoojee Experienced Mentor Registered Posts: 794
    PGM wrote: »
    I hadn't thought about this;

    So for all the people that have sponsorship for their motorsport or whatever hobby. They should show all this money given to then as income?

    I bet this often isn't the case; what if they argue its not income, it was given for a specific purpose for which I spent the money...

    But don't they just claim the expenses as allowable expenses so the 2 net each other off?
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