Tax

ss_collins · 17 Jan 2004, 18:55 (Ref:841733)

what a nasty three letter word thats is.

I make my entire crust from motorsport, what are the tax implications re tax deductions for safety equipment and licences?

Has anyone tried this?

**Tim Falce** · 17 Jan 2004, 20:42 (Ref:841802)

If you need the safety equipment for your job it should be tax deductable, I claim for my work wear, i also get a tax free meal allowance and before this I claimed tax back on meals bought away from my work place. If you need a licnence for your work it will be deductable but would the extra costs your accountant incur cover the benifits gained from claiming for a licence?

***Chris Y*** · 17 Jan 2004, 21:59 (Ref:841878)

You'd probably get a better response in the Racers' forum..

StephenRae · 18 Jan 2004, 12:46 (Ref:842320)

If self employed, all expenses incurred are deductable. The inland revenue will have a booklet describing what is legitimate and what isn't.
I once tried to put all of the costs of racing my FF1600 against my tax, on the basis that I was advertising my business. I was told that because of my 'participation' it was not allowed. The cost of the actual stickers however would be allowed.
It did occur to me that if two racers were to get together and pay each other's bills the Revenue would have no arguement.

kickstart · 18 Jan 2004, 13:19 (Ref:842342)

StephenRae, that is a very interesting idea about the two racers cross sponsoring each other. I did speak to my accountant about writing off the cost of racing on the basis of promotion, but was told the same as you, eg forget it. I will speak again with him...

StephenRae · 18 Jan 2004, 14:31 (Ref:842397)

Quote:

Originally posted by kickstart
StephenRae, that is a very interesting idea about the two racers cross sponsoring each other. I did speak to my accountant about writing off the cost of racing on the basis of promotion, but was told the same as you, eg forget it. I will speak again with him...

I think, to be viable one would have to 'sponsor' a driver in a completely different class. There is also a limit, dictated by percentage of company turnover that can be offset against advertising.

ss_collins · 18 Jan 2004, 15:37 (Ref:842414)

I've just been trying to work out the essentials as the tax man may see them

Safety wear etc...
Licences
Club Membership

what other absolute essentials are there? the odd entry fee? insurance?

**Tim Falce** · 18 Jan 2004, 16:41 (Ref:842455)

What does your accountant say?

StephenRae · 18 Jan 2004, 17:51 (Ref:842496)

Quote:

Originally posted by ss_collins
I've just been trying to work out the essentials as the tax man may see them

Safety wear etc...
Licences
Club Membership

what other absolute essentials are there? the odd entry fee? insurance?

If you substitute 'legitimate expenses' for absolute essentials then everything you spend in the course of doing the job is allowable. travel,subsitance,protective clothing,wear and tear etc.etc.