To business expense a handbag

[CrotchBurn]

I am self employed (think graphic designer) and am getting a bit embarrassed of carting around a raggedy rucksack when I go to work spaces and occasionally when I see clients.

I've seen a really nice handbag, theres also a laptop sleeve that goes with it (I mean a matching laptop sleeve but sold separately).

Would I be unreasonable to business expense it? I feel torn because it's kind of me as well as for work stuff

I used to work for HMRC, albeit 20+ years ago. Make sure the invoice says "laptop bag". Amazing what people claim for - a history teacher at the local public school claimed for a whole heap of newly published books peripherally connected to his subject. It was allowed, after some raised eyebrows

All the people on here saying "go for it" please know that this is far far further from legal than the sorts of tax planning schemes undertaken by large corporates.

Ex chartered accountant here. Wholly and exclusively is your friend. The 'necessarily' doesn't apply if you're self-employed. If you're going to use the handbag wholly and exclusively for putting your bits and bobs in to go to work meetings, you are entitled to claim for it. Laptop bag is fine if it is for your work laptop. Some of the shit people are putting on here is hysterical. If you're in doubt about a tax question, ask an accountant, not random strangers on an internet forum.

I bought a whistles back pack as a laptop bag and expensed it. Didn't feel a moment's guilt. Admittedly, I'd say I use it 99% genuinely for my laptop only and can count on one hand the number of times I've used it without the laptop inside it.

I do think a handbag is broadly a harder sell. But if you are genuinely carrying your laptop in it then I'd be inclined to expense it. .

the relevant case law for tax and business 'clothing' is Mallalieu -v-somebody (stage costumes allowable from memory. Mallalieu was trying to claim black clothes worn in court wer business only, as black not her choice, but ruling was that she needed to wear them for warmth and decency).

Essentially the laptop sleeve is allowable, but not a handbag.
Splitting hairs, but you'd probably get away with choosing a stylish laptop bag - Knomo have nice ones.
If you try it, describe as a laptop bag when you log it in your accounts - but in the event of an inspection, I don't think your going to get away with a stash of Louis Vuitton or Mulberry laptop bags set against tax.

YANBU i remember when I worked in The City, we had to meet some clients from south America, the women all had v expensive handbags and I remember looking at my m&s bag and thinking, they'll know I"m not paid very well. I felt my low salary was on my forehead.

I'm glad another accountant has commented on here.

I'm an accountant. The people saying it's against the law or "far, far, from legal" etc are talking nonsense. And I don't know why people are banging on about comparing it to clothing.

It' not clothing, it's equipment, and if used wholly and exclusively for your business then it is allowable.

I worked for HMRC for 33 years, last few in Compliance (investigations).

This is not a qualifying deductible expense as it fails the "wholly, necessary and exclusively" test, just as normal clothing does (protective clothing allowable as are logo'd uniforms).

I used to examine claims all the time and challenge them. When items that had been claimed for were disallowed we not only reassessed the tax for that year, (and we went through everything with a fine-toothed comb) but for the previous 6 years too as the law upholds the view that a fraudulent claim would have been made in all previous years. The onus is on the taxpayer to prove otherwise.

By the time interest and penalties were added the 7 years total additional bill was always many many times the amount "saved" by the fraudulent claim.

Oh and if an accountant was involved in liaising with us they gave you a massive bill too.

Seriously, don't take the risk for a few quid.

Don't you have an accountant, being employed? Ask her.

self-employed.

Handbag with conspicuous company branding on maybe allowable?

I’d do it but buy something which is sold as a laptop bag or document case like this

www.aspinaloflondon.com/products/london-document-case-in-deep-shine-black-soft-croc

My accountant would say yes to the laptop bag, but no chance to a handbag. I've put through laptop bags, as well as bags for carrying specialist equipment just fine, but I can't put trainers or leggings for example on my claim (my business is in fitness) because I can use them outside of work (for example I don't change into my uniform on arrival at a venue, I wear it to commute in and might wear it round Tesco after work etc) however in a former job where I needed steel soled safety boots I did claim for them, and the only time I ever wore them outside of site visits for work was when the sole came off my shoe on a day out and I needed something to drive home in and they were all I had in the car! As the above poster says, be very careful what you claim, always ask if it's a genuine business expense or if it's something for you you're hoping to pass off because having 6 years of accounts audited isn't worth it. Just because some people do try to pass off non business expenses as business ones doesn't mean you should, and just means they've not been caught out yet not that it's allowed.

Business Expense is not a verb - therefore you cannot.

Greedy and grasping.

'Expense' is not a verb, btw.

Expensed is a verb in accounting 😂
Not in these exact same circumstances, but a verb nonetheless, in published accounting standards.

Definitely worth getting an accountant, they can save you more than they charge and any problems and it's their fault.
There will be people answering who don't necessarily know what they're talking about and just have an axe to grind

Do it OP! Because if you don’t someone else will. I have a friend that landed herself a new job and she requested that she’s put up in a more expensive hotel.....

Why shouldn’t you?

Ex chartered accountant here. Wholly and exclusively is your friend. The 'necessarily' doesn't apply if you're self-employed

I worked for HMRC for 33 years, last few in Compliance (investigations)

This is not a qualifying deductible expense as it fails the "wholly, necessary and exclusively" test

This is why you shouldn't rely on the internet for tax advice - which one is it @BMW6 @LivingOnAnIsland ?

Just buy the handbag!

Sadly you can’t as it isn’t for exclusive work use. In the same way comedians can’t expense the clothes they wear on stage.

"Published accounting standards" are obviously pretty low then, hobby.

@Blossomhill4

Do it OP! Because if you don’t someone else will. I have a friend that landed herself a new job and she requested that she’s put up in a more expensive hotel.....

Why shouldn’t you?

What does that mean?

There's not just one bag up for grabs from the inland revenue, the OP isn't in some kind of competition to win a tax deduction

@byvirtue

If you can stand up in a court of law and argue your case for the bag then yes I would (chances of that ever happening very low!).

It winds me up when you see the offices of google, Facebook etc with their pool tables, pinball machines etc. All business expenses of course!

Why does it wind you up? What about it specifically winds you up?

To the OP : if you claim for something as a legitimate expense (and by some miracle you get it approved by HMRC) then in the future you get employees then they can also claim for exactly the same. So they would be able to get a handbag on expenses as you have set a precedent as it being legitimate.