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Allowable expenditure
Within the Media and Entertainment industry clients often question which allowable expenses they can claim and would therefore be permitted to offset against their income. Under the most recent legislation HMRC allow self-employed individuals to claim those expenses which have been incurred "wholly and exclusively" for the purposes of the trade being undertaken. Off course it is essential to note that expenses claimed by self-employed individuals in this sector are specific to this industry and to an individual self-employment activities.
The 'Taxes Act' states that as a self-employed individual you are entitled to claim for expenses incurred" ...wholly and exclusively... for the purpose of trade. Let's look at some of the more common types of allowable expenses, although it must be pointed out that this is not an exhaustive list:
- Use of home as office, office rental costs, studio hire
- Agents' fees and commissions
- Secretarial assistance
- Professional subscriptions
- Taxis, trains, flights, accommodation and subsistence in some cases
- Motor expenses
- Telephone and fax
- Printing, postage, stationery and photocopying
- Computer expenses and accessories, software and internet charges
- Photographic expenses and press cuttings
- Theatre, cinema and concerts
- Television licence, satellite/cable costs
- Reference books, research articles, scripts, professional journals and newspapers, DVDs
- Publicity costs
- Cosmetic dentistry, hair-cuts, make-up and beauty
- Courses and conferences
- Stage wardrobe and clothes for press releases
- Bank and credit card charges
- Hire purchase or leasing costs for equipment/machinery
- Accountancy, tax and bookkeeping fees
- Legal costs
- Research assistance and materials
- Repairs and maintenance of equipment
- Insurance for business and business equipment
- Capital expenditure which qualifies for capital allowances
Some of the important topics for those working within the Film, TV and Entertainment Sectors are as follows.
Mr Kaleem A Saeed is a Fellow member of the Association of Chartered Certified Accountants.
