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I run an entertainment agency that provides ents .

Resolved Question:

I run an entertainment agency that provides ents for events. Sometimes the act i put together are style, so clothing is purchased. I was watching a webniar for crunch accounting which said that clothing cannot be claimed as an expense? so how to i justify this expense in my accounts. most time i purchase clothing from online retails for a large amount then use some of it and get the others refunded. so how does one log this?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question, I am Sam and I am one of the UK tax experts.
Unless the clothing is specialist, such as costumes, or for health and safety, then I am afraid the advise you have already obtained is correct.
And in your case, clothing would not fall into either of those remits.
So none of the costs are allowable as a business expense
Sorry the news is not more favourable.
Thanks
Sam
Customer: replied 2 years ago.

hi there.

surely this is specialist? Even with MU rules we have to provide artist with clothing rather than them spending their own when a certain type of clothing is needed. For instance - when every band member have to wear the colour scheme set out in the contract etc.
So are you saying that when dancers / singers musicians perform on platforms like the brit award , grammys, festivals etc - that all their styling is not claimed as an expense and the record labels or relevant companies spend this money knowing that they cannot claim it against the business?

Expert:  Sam replied 2 years ago.
Hi
With artists at the grammy's and other such awards I doubt many of them pay for them own clothes or accessories !
But this is not uniform or specialist, this is ordinary clothing, as dictated by just a colour scheme, its not a true uniform (although I do see that when its a unified colour - there would a small margin of scope to argue this) and its not for protection of for health and safety purposes. I will say however if those purchases are argued as costumes, then these are allowable. But make sure you identify those where all band members had to wear a same theme (and you have made purchases for ALL band members)
Also these would then need to be retained by you - rather than given to the artist to retain.
If you met all the remit - that they were costumes and you retained them as such, then you have a strong valid claim.
Thanks
Sam
Customer: replied 2 years ago.

Many thanks for this Sam - makes send , you have been most helpful.

And yes, all clothing is retained by me - intact its piled up at my office lol.

Thanks once again you prompt attention to my query.

All the best,

Waleed

Expert:  Sam replied 2 years ago.
Hi Waleed
Thanks for your response
Then it sounds like you have a valid claim (and maybe could also make a small side line of "hiring" out to mall time entertainment agencies or other such businesses within the industry, or selling them on - to off load them from your gathering collection!)
let me know if I can be of any further assistance, but in the meantime it would be appreciated, if you could rate (accept) the level of service I have provided.
Thanks
Sam
Thanks
Sam, Accountant
Category: Tax
Satisfied Customers: 13776
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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