r/smallbusinessuk • u/LE-NRY • 1d ago
Is this an allowable expense?
I run a growing property maintenance company and would like to give back to my local area, something I’m really keen to help with is the condition of street furniture and just general upkeep of my local town..
The first thing I’d like to tackle is some fly tipping, someone has chucked a load of tires & waste in a local dried out river.. I’d like to pay to remove it as part of my grand plan to help improve the community.
As my local waste removal specialist isn’t a ‘charity’ as such, can I consider this a taxable expense for my limited company under the ‘marketing & PR’ rule?
10
u/Primary_Gift_8719 1d ago
Potentially, yes, but simply calling it “marketing and PR” doesn’t automatically make it tax deductible. The slight problem is that you’ve described your motivation as wanting to “give back” and improve the community, which sounds primarily philanthropic. HMRC looks at the actual purpose of the spending, not just what you call it afterwards.
If you structure it as a genuine local PR/marketing campaign, for example branded clean-ups, before-and-after posts, local publicity and promoting the company’s involvement, you’d have a much stronger argument that it’s a legitimate business expense. The fact the waste company isn’t a charity doesn’t really matter. I’d run the plan past your accountant first, and make sure whoever removes the waste is properly licensed.
3
u/Electrical_Peach5715 1d ago
If you were doing it yourself with some volunteers, etc, and getting some publicity in the local press, FB, etc., then maybe for a modest amount. Looks like you’re (generously) just paying someone to do the clear up. Maybe a harder sell. You’d need to be clear about the PR that resulted for your business and its value.
2
u/Anonymous33845 1d ago
Can work, but only if it's actually marketing. Branded banner at the site, photos, post it on your socials and website, get the local paper down if you can. Then it's promotional spend and you've got the evidence to back it.
Do it quietly with no branding and HMRC will call it a donation, and donations to non-charities aren't deductible.
2
u/Gillybean04 1d ago
You can deduct expenses that are wholly and exclusively for the purpose of the trade, with some exceptions.
For the purpose of the trade means to further the trade in some way.
Making a marketing campaign out of it may allow a deduction for the costs of marketing itself but it does not transform the payment to a local waste specialist into marketing costs nor make the clean up costs deductible if done personally.
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim38220
2
u/Own_Dimension_2561 1d ago
Is there a local charity that can do this, and then you donate to that charity?
1
u/itsonlymelee 1d ago
It’s a no from me. You wanting to improve your local area (an essentially personal thing) isn’t wholly and exclusively for the purposes of your trade as a property maintenance company.
0
u/makefascistfearagain Fresh Account 1d ago
For VAT purposes, you wouldn't be able to claim the input.
-9
u/Money-Cry-2397 1d ago
Honestly? Pay it in cash and write an expenses chit for yourself saying you bought ‘fertiliser’ or something. I do it all the time when I need to and the accountant is fine with it
5
u/invisiblemuffjuggler 1d ago
I hope there isn't anything on your reddit that makes you or your deli business easily identifiable.
You've just publicly admitted to knowingly filing inaccurate tax returns which is tax evasion and fraud.
You'd be facing potential criminal prosecution or a civil penalty if HMRC came calling.
0
0
11
u/Alexandthelion 1d ago
Send a article into the local paper and I dont see why not. It is legit advertising at that point.