AN adult-sized pink tutu, lap dances and a fart machine are among items firms have claimed on expenses, a study shows.
Live lobsters, Lederhosen, and the cost of a cremation have also appeared on the books, analysis found.
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One firm claimed against a stash of Chinese sex toys while another put in for a steamy tantric workshop session.
All of the claims were ruled legitimate yet almost half of small business owners — 44 per cent — do not deduct expenses from profits to reduce their tax bill.
They are unsure what qualifies as a permitted expense and fear fines if they bungle paperwork, says online firm The Accountancy Partnership.
Boss Lee Murphy said it was no surprise the owners of many smaller firms avoid claiming as HMRC expenses guidance can be “vague and confusing” with hefty fines for getting it wrong
He said: “However, expenses that occur due to business circumstances are allowable in most instances, no matter how dubious they may seem.”
An estimated £5.6billion is going unclaimed each year.
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