Deductibility of expenses by an exotic dancer

The taxpayer was a self-employed exotic dancer who performed at a London nightclub. She claimed deductions for travelling expenses to and from her home to the club and other items such as clothing lingerie dry cleaning make-up beauty treatments and hairdressing. The taxpayer had an office at home from which she carried out work-related activities.

HMRC refused the claim and imposed penalties under FA 2007 Sch 24 for careless completion of the returns. The taxpayer appealed.

The First-tier Tribunal followed the Upper Tribunal’s decision in Samadian v CRC [2014] STC 763 and ruled the taxpayer’s travelling expenses were not allowable because they had a dual purpose. They were incurred to travel from home to work and back again as well from her home office location to her place of work at the club in London.

On clothing the tribunal accepted the taxpayer’s evidence that the...