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Are raffle tickets an allowable expense?

se2020
Posts: 529 Forumite

in Cutting tax
I'm a self-employed sole trader.
There is a company selling raffle tickets for
sets of tools etc.
£10 a ticket with a 1-in-200 chance of winning sort of thing.
If I won a prize then that prize would be used purely for work.
Can I claim the cost of the tickets as an expense on my self assessment return?
There is a company selling raffle tickets for
sets of tools etc.
£10 a ticket with a 1-in-200 chance of winning sort of thing.
If I won a prize then that prize would be used purely for work.
Can I claim the cost of the tickets as an expense on my self assessment return?
0
Comments
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No. ................
"Real knowledge is to know the extent of one's ignorance" - Confucius0 -
So if I've won a prize what's the best way to account for putting the value into my business?
I presume If I've won some tools I can't sell them to myself can I?
Would I have to sell them as personal items ie. not declare the money from the sale as income, then purchase new ones to claim the expenses against?0 -
se2020 said:So if I've won a prize what's the best way to account for putting the value into my business?
I presume If I've won some tools I can't sell them to myself can I?
Would I have to sell them as personal items ie. not declare the money from the sale as income, then purchase new ones to claim the expenses against?But we are talking about a 0.5% chance?0 -
So if the value of the tools is £1500 I just put that into my tax return?
Obviously I don't have any receipts for the tools so do I just keep screenshots/emails from the raffle?
I didn't bring any items into the business on day one. I just normally save the receipts throughout the year and add the expenses into my self assessment at year end.0 -
Yep. You can only do what you can with the proof of raffle. Perhaps ask the organisers to provide you with some kind of documentation?0
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se2020 said:£10 a ticket with a 1-in-200 chance of winning sort of thing.
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p00hsticks said:se2020 said:£10 a ticket with a 1-in-200 chance of winning sort of thing.
Total spend £64.
On my last ticket I have won a package of tools worth £1750.
So I need to add the cost into my tax return somehow.
I thought I would only be able to claim for the cost of the tickets but if I can just put the £1750 in as tools then I'll do that
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As a sole trader there is only you, there isnt a you and your business hence you correctly identify you cannot sell them to yourselves.
I believes others are correct and gambling cannot be a legitimate business expense and so you've nothing to deduct off your profits. You certainly cannot claim the full price as an expense that you havent paid!
Are these tools going to be used for your business or yourself or a mixture?
In theory if you were to sell them as used tools in the future and had been using them 50/50 for work and personal then arguably 50% of the sale price should be marked as revenue for your business.0 -
The tools will only be used for work.
If I had not won these then I would have bought ones the same for work use at some stage anyway.
I appreciate that me & my business are both one and rhe same thing.
But, if the tickets are not a valid business expense then I must have paid for them out of my own personal income?
If that is the case, I presume I could sell these tools for say £1250 and that £1250 would not need to be declared as income?
Then I could just buy the same tools as I was going to eventually anyway and use the receipts as a valid expense?0 -
se2020 said:But, if the tickets are not a valid business expense then I must have paid for them out of my own personal income?
Obviously they hope that next year when I need a new actuary I call them and they get their £200 a day for supplying them to me but they cannot knock my dinner off that.
Whilst it would be nice to keep the full £1,200 in your pocket you are still getting c£900 in your pocket (if you sell them) for your £64 spend0
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