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Lucid Guys on Internet Marketing #21 – Expenses

26 July 2011 No Comment

Part 21 in a series of Internet Marketing videos featuring David Congreave and his assistant Beth Rudkin.

This week David and Beth have breakfast on the business.

To ask David and Beth an Internet Marketing question, send an email to video@davidcongreave.com

To subscribe to The Lucid Guys, visit http://www.youtube.com/thelucidguys


DAVID
I’m David Congreave, here with my assistant Bethany Rudkin, and today, breakfast is on the business.

BETHANY
What does that mean exactly?

DAVID
Basically, this meal that we’re eating is going to be charged to the business as an expense which means it’s tax deductible.

BETHANY
Are you sure that’s allowed?

DAVID
How do you mean?

BETHANY
How do you know when something is or isn’t allowed to be classed as a business expense?

DAVID
Excellent question my audience surrogate. In the UK at least, a business expense is something that you had to pay to do your job. So, in this case, we’re making a video for our business, and the script says we have to be eating breakfast. Therefore the cost of that breakfast can be charged to the business.

BETHANY
What if there’s leftovers, after we’ve finished making the video. For example, if you haven’t finished drinking your coffee, can you still charge it to the business?

DAVID
Erm, I would imagine that’s ok.

BETHANY
Maybe you should measure what percentage of the coffee is left and subtract that from what you charge the business.

DAVID
Erm, perhaps.

BETHANY
OK – here’s one. What if I show a chocolate bar in the video, but I don’t eat it until after work?

DAVID
Erm…

BETHANY
Or what if I purchased a new pair of trainers to wear in the video. Could I charge that to the business?

DAVID
I don’t think clothing is allowed, unless it’s required to do the job. Such as protective gloves for handling the lights.

BETHANY
Well what do film production companies do? Are you telling me the costumes they wear isn’t a business expense?

DAVID
There’s probably different rules…

BETHANY
What if I get my hair done before a video?

DAVID
OK – stop. Here’s the golden rule that covers every scenario. When you incur an expense, write down what it is, then give it to your accountant, and let him…

BETHANY
Or her.

DAVID
…figure out whether or not it’s an expense.

BETHANY
That’s a good idea.

DAVID
It is. If they’re a qualified accountant then they’re best placed to answer your question. And if they’re not sure, then they contact your tax office and get some official guidance.

BETHANY
Is hiring an accountant a business expense?

DAVID
Please can you stop now?

BETHANY
Are milkshakes a business expense?

DAVID
If you want me to buy you a milkshake, then just ask.

BETHANY
Will you buy me a milkshake?

DAVID
Will it stop you talking for a bit?

BETHANY
Yes. Yes it will.

BETHANY
And a muffin.

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