Often there are misunderstandings in regards what is allowable and what is not. The list below covers the items which are most common.
This list is written in general terms and advice over specific items should always be taken.
|Item||Allowable expenses||Dis-allowable expenses|
|Everyday business expenses||Expenses incurred wholly and exclusively in the course of business||Any personal expenditure and any entertaining except where this relates to staff|
|Accountancy Fees||Business related fees||Expenses relating to specialist consultancy work|
|Capital items (This is where the item is expected to be in use for more than a year)||An annual capital allowance is available on most items of equipment, as well as the Annual investment Allowance||Freeholds and long leaseholds on most non-industrial premises|
|Bank Charges and interest||Charges on business accounts and interest on loans taken out for trade purposes only||Interest for personal loans and overdrafts|
|Gifts for customers||Gifts costing up to £50 and bearing the business name||Any items of food and drink|
|Expenses home||A reasonable proportion of home running costs, dependent on the extent of home use for the business||Any domestic running cost not related to the business|
|Motor expenses||The business proportion based on the mileage||Any private element|
|Traveling expenses||Traveling expenses on the traders business||Travel between home and the normal place of business|
|Insurance||Business related policies||Health and sickness policies, Life Assurance|
|Entertainment||Staff entertainment||Non staff or customer entertaining|
|Subscriptions||Subscriptions to a professional or Trade body||Political Donations|
|Computer Software||If this has been bought separately from the hardware||Otherwise this would be covered under Capital Allowances|