One of my clients recently received a letter, shown below, from their Tax Office. Most of the required information is routine information for any business, what worried them was the request highlighted.
Happily, I was able to supply them with a printout of the information, including when and where online adverts had been uploaded. Coming from an ad agency this more than satisfied their Tax Office, that this person had been taking reasonable action to advertise their business.
Note: the request only asks about advertising, not marketing.
Which leads me to back my first question. “You are advertising aren’t you?”
Despite the many commercial benefits that advertising can bring. It now appears to be a necessary requirement in a tax review or investigation. As well as a breakdown of the hours you work, a summary of your bookings and appointments, invoices etc. You are expected to show that you are actively advertising your business. If you are solely relying on marketing, networking and ‘word of mouth’ you may have some difficulties in finding a suitable answer to this question, should it be asked.
If you want to be sure that you have an answer to this. You should call and arrange an appointment, to talk about what you can do to actively advertise your business. While ensuring you have the appropriate records to show that you have done so.
Gavin Bryan-Tansley - Vid-FX+ Advertising