An amount claimed to be wages paid to a self-employed taxpayer’s son was not an allowable deduction, as it was not incurred wholly and exclusively for the purpose of the taxpayer’s trade.
The appellant’s tax return for 2013/14 included a claim for business expenses against his self-employment income. Among those expenses was a claim for £7,400, relating to wages alleged to have been paid to the appellant’s son. Following an enquiry into the tax return, HM Revenue and Customs (HMRC) disallowed the claim. The appellant appealed.
The appellant’s deduction for wages to his son of £7,400 was claimed to be based on 15 hours per week at £10 per hour for the ‘promotion of the business through internet and leaflet distribution and computer work’. The appellant advised that this was paid to his son (who was studying at university) through the ‘provision of goods’ and
