Alleged expenses of self-employment

The taxpayer was a self-employed entertainer appearing on an adult television channel. She was in an abusive relationship with S who was the father of her children but also her agent and webmaster. The decision was anonymised to protect the children.

The dispute concerned deductions claimed for webmaster fees agent fees and accountancy for the years 2013-14 2014-15 and 2015-16. The First-tier Tribunal said there was no evidence of an agency agreement so no fees were allowable for that. Similarly there was nothing to show that there was any contract between the taxpayer and S that he would host a website on her behalf. Further there was no evidence that the taxpayer had received any income from this source. Expenses could be allowed only when they could be shown to have been ‘incurred wholly necessarily and exclusively for the purpose of the...