Hi all,

Hope all well with everyone.

Sole Trader holiday cost inclusion as taxable expense seemingly passes the 'whole and exclusively' for business purposes where the Sole Trader takes time off work to mitigate against burnout and mental health in a similar way as an employee is paid holiday pay. Were he/she not to take holiday (time off), he/she may suffer burnout or mental strain which will affect his/her business performance. Of course it has to be reasonable i.e. just one holiday per year (to match employee benefit), only the sole trader is entitled and where sole trader is not on company's payroll. Does this makes sense or is there a blanket HMRC regulation against Sole Trader holiday under any circumstances?

HMRC website is not clear and seems to imply that the test to be passed is the 'wholly and exclusive' one. Anyone have any conclusive guidance on this?

Thanks.

Farouk