Soho House, David Lloyd, and Your Tax Return: A Right Royal Knees-Up or a HMRC Headache?

Sipping cocktails at Soho House, a quick dip in the David Lloyd pool, all in the name of "business," of course. But before you start throwing your company's dosh around like a lord at the races, let's have a look at what HMRC has to say about claiming those swanky memberships.

The "Strictly Business" Rule (No Tomfoolery!)

Now, HMRC ain't daft, they know a bit of a knees-up when they see one. Their rule is simple: expenses must be "wholly and exclusively" for business, no ifs, ands, or buts. So, that lunchtime pint and a cheeky burger at Soho House after a "meeting"? Yeah, that might raise an eyebrow or two.

What's Usually a Safe Bet

• Journals and Trade Rags: Keeping up with the latest gossip in your industry? Those subscriptions are usually bob on.

• Essential Memberships: If it's a must-have for your job, you're usually good to go.

What's a Definite No-No

• Gym Bunnies Beware: That David Lloyd membership might keep you fit as a fiddle, but HMRC sees it as a personal perk, not a business expense.

• Political Donations: Keep your political leanings out of the company accounts, mate.

• Charity: Giving to a good cause is lovely, but it's not a business deduction (though Gift Aid might help).

• Union Memberships: They are typically only deductible for employees if the membership is a requirement of their employment contract.

The Tricky Bit: Soho House, David Lloyd, and the Like

Here's where it gets a bit pear-shaped. These places are a proper mix of work and play. Sure, they've got meeting rooms and Wi-Fi, but they've also got those tempting pools, spas, and bars. HMRC will be watching like a hawk, so tread carefully.

How to Keep HMRC Happy

• Separate Bills, Please: If they can split the bill between "work" and "play" (like Soho Works vs. Soho House), that's a good start.

• Company Name Only: Ensure those invoices are in your company's name, not your own.

• Keep a Diary: Every visit, every meeting, jot it all down. "Networking lunch" sounds a lot better than "three-hour boozy brunch."

• Easy on the Fun: Keep the personal stuff to a minimum, and be ready to prove it was just a side dish to the main course of business.

Limited Company vs. Sole Trader: Same Rules, Different Game

Whether you're a one-man band or a big cheese with a limited company, the rules are pretty much the same. But for company directors, there's an extra catch. That Soho House membership could be seen as a Benefit in Kind (BIK), meaning extra tax for you and the company. Ouch!

A Word from the Wise

Every business is different, so get some proper advice from a tax whizz before you go claiming for that champagne afternoon tea.

Bottom Line:

• Think twice before claiming those fancy memberships.

• Keep detailed records to back up your claims.

• When in doubt, ask an expert!

And remember, a bit of common sense goes a long way. If it feels dodgy, it probably is!