Working from Leisure Centre

T

tyler_d

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My wife is self employed and works from the Leisure Centre. Sbe uses the gym for classes but she also drops the kids in for classes and works from the business room. It's basically a shared office. I was told that gym memberships cannot be put through the business for self employed (could be mistaken though) but if you work from there would this be okay to put through as an expense? If so is it BIK?
 
Hi,
You might clarify, but I'm assuming your wife's self employment is not connected to the gym (not a Personal Trainer for example?)
I'm assuming it's just the case that by being a member of the gym, the gym provides free access to a meeting room as a free perk?
In general, the test for allowable expenses is that its "wholly, exclusively and necessarily" incurred for the purposes of the trade. So I can't see how it'd be allowable.
 
Packaging is important here I reckon. Perhaps the Leisure Centre could sell her access to the Business room on an annual basis & provide free gym membership as a goodwill gesture.
 
Sorry not she doesn't work there as a trainer. Thanks for this, it's very helpful. I found this 'Wholly and Exclusively' on the revenue website along with another rule that says if it has a 'dual purpose' then its not tax deductible. I wasn't looking to claim back the tax from it but thought maybe it could have been an expense reducing tax payable on year end return. I guess not though.
 
RedOnion said:
They're the same thing?
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If I pay €100 for stationary, i can claim back say €18 of so of vat. I would use the other €82 as an expense meaning less tax due at end of year. In the gyms case I wasn't looking to claim back the vat. Just put it through as an expense. Hope that makes sense.
 
I talked to the gym there and they said people do put it through as an expense but they don't really don't know the tax implications. I suppose the issue is if you put it through and revenue see it a few years later and decide it's not an expense you'll be paying fines/interest.
 
Horatio said:
Packaging is important here I reckon. Perhaps the Leisure Centre could sell her access to the Business room on an annual basis & provide free gym membership as a goodwill gesture.
Click to expand...
Thank you for the reply. Very clever but I think it might be stretching it a little bit. The gym wouldn't sell those kind of packages either and I'd imagine they wouldn't be eager to bend the rules for tax reasons.
 
tyler_d said:
Thank you for the reply. Very clever but I think it might be stretching it a little bit. The gym wouldn't sell those kind of packages either and I'd imagine they wouldn't be eager to bend the rules for tax reasons.
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Not to beleaguer the point but they might start selling those packages if it were to occur to them or if they were to realise that there is demand beyond just you. A business center is a resource like any other that can be monetised.

Plenty of workhubs around the country selling desk time by the hour or day or month or year.
 
RedOnion said:
In general, the test for allowable expenses is that its "wholly, exclusively and necessarily" incurred for the purposes of the trade. So I can't see how it'd be allowable.
Click to expand...
It's "wholly and exclusively" for self-employed sole traders. The "and necessarily" bit is for PAYE employees.
 
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