The rather glib answer is "Anything that relates to your business". Whilst this is generally true, there are some expenses which, although genuine business expenses, are specifically excluded from tax relief, such as:
* Business entertaining including the VAT; however input VAT on business entertaining of overseas customers is recoverable
* Charitable subscriptions and donations, except to small local charities
* Political donations
* Costs and Fines for breaking the law
* Loan Capital Repayments
* Drawings, including payments for tax and National Insurance contributions
* Depreciation; capital expenditure is subject to the capital allowance regime
April 2013 saw the introduction of a new cash basis for calculating taxable income for small unincorporated businesses.
One of the measures allows any unincorporated business to choose to use flat rate expenses for the following items of business expenditure:
* Fixed allowances for business mileage
* Expenses relating to business use of the home
* Adjustment for private use of business premises
This information is not exhaustive. Please contact Martin Southern at Morris Crocker Charterered Accountants on tel 023 9248 4356 or email firstname.lastname@example.org if you have any queries about the allowability of specific expenses.
Morris Crocker Charterered Accountants
As we cannot be experts in every relevant subject, we would love to receive 'guest' articles that may be of interest to anyone running their own business or thinking of doing so. ADD YOUR ARTICLE