![]() ![]() How to claim allowable expenses in the UK These, however, do not include courses that train you to start a new business. Training courses: Expenses on classes that help you improve your skills in your current business count as allowable expenses. Marketing, entertainment, and subscriptions: This includes expenses involved in subscribing to trade journals or magazines, advertising in printed media, and building a business website. Legal and financial costs: This covers bank charges, credit card charges, overdraft fees, interest on business loans, and the cost of hiring financial specialists or professionals like accountants, auditors, and solicitors. Reselling goods: Costs incurred to acquire raw materials, produce sellable goods, and transport materials. Staff expenses: This includes expenses like employee salaries, bonuses, pensions, and employer’s National Insurance Contribution (NICs). Regular clothing worn for work does not count as an allowable expense. You should note that daily commute to and from work does not fall under this category.Ĭlothing expenses: Clothing becomes an allowable expense if it is spent on a uniform, any protective clothing needed for work, or any clothing material required for work, for instance, a costume because you're an entertainer. Office, property, and equipment: This covers costs such as office phone bills, stationery, fax, postage, software, printing, rent, and other small office tools and equipment.Ĭar, van, and travel expenses: Expenses like fueling, servicing, vehicle insurance, license fees, business travel visas, train tickets, and bus fares are covered in this category. Here are some common cost categories and items included in those categories you can claim as allowable expenses. What are examples of expenses that fall into the allowable expenses category? What you can claim as an allowable expense in the UK Instead, you’ll only pay tax on £25,000 (because £5,000 was spent on allowable expenses).įor an expense to be considered allowable, it must be spent solely for the purpose of running your business and nothing else. You wouldn’t have to pay tax on the entire £30,000. ![]() Say your company made £30,000 at the end of the year, and you spent £5,000 on allowable business expenses. Since these expenses are not taxable, it’d help you reduce how much you pay on your profits. “Allowable expenses” is a term used to describe costs or expenses you incur while running your business that you can claim as tax deductions.
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