UKFTT 262 (2009) Muhammad v HMRC

Allowable expenses - HMRC won

Case Summary:

In his accounts for the year ended 29 November 2004 Mr Muhammad had claimed total deductions of some £18,000 against turnover of £635, arising from his business as a self employed musician.  The deductions claimed included his entire domestic telephone and electricity bills. 

The appeals were dismissed as the figures used by HMRC were reasonable and had not been rebutted by Mr Muhammad.  HMRC’s proposal to take the self-employment figure for 2002-03 as no-profit-no-loss was effectively allowing a deduction for some 20% of the expenses originally claimed, which was more than reasonable.