Mark McLaughlin looks at a case in which a self-employed individual successfully claimed tax relief for expenditure on fitness training.
It may be tempting for self-employed individuals to claim tax deductions for expenditure that is not ‘wholly and exclusively’ for the purposes of their trade, profession or vocation.
Unfortunately, the tax rules generally preclude a deduction for such expenditure.
However, if an expense has a mixed (i.e. business and private) purpose, the tax rules permit a deduction for any identifiable part or proportion of the expense which is incurred wholly and exclusively for the trade, etc. This is helpful for some expenses, but not all.
For example, if the self-employed individual uses their own car for business and private purposes, the business proportion of motoring costs can be