Jon Golding looks at business advertising methods and whether the costs will be allowable against tax.
When claiming advertising expenses, no deduction is allowed for expenditure unless it is incurred ‘wholly and exclusively’ for trade purposes (note that the third requirement for employment income expense purposes of being ‘necessarily’ incurred does not apply.
Is it eligible?
It is a question of revenue law that the expenditure must be capable of satisfying the wholly and exclusively tests (see examples below). If an expense is capable of satisfying the test, then it is a question of fact whether it was incurred solely for business purposes (i.e., for the purposes of that particular trade).
However, where there is no clear
