| Item |
Deductible Against Profits |
Not Deductible |
|
Normal business expenses generally
|
Expenditure incurred wholly and exclusively in the course of business
|
Personal expenditure and all entertaining except staff
|
|
Capital items (i.e. items expected to be used for more than 2 years)
|
An annual capital allowance is available on most items of equipment
|
Freeholds and long leaseholds of most non-industrial premises
|
|
Computer software
|
If bought separately from hardware
|
Otherwise, capital allowances available
|
|
Gifts to customers
|
Gifts costing up to £50 and bearing the business name
|
Any item of food, drink or tobacco
|
|
Home expenses
|
Reasonable proportion of home running expenses, depending on he extent of use of home for business
|
Domestic expenses not related to the business
|
|
Telephone bills
|
Business proportion based on calls
|
Private element and home line rental
|
|
Motor expenses
|
Business proportion based on mileage
|
Private element
|
|
Travel expenses
|
Business travel
|
Travel between home and normal place of business
|
|
Subscriptions
|
Professional subscriptions, relevant magazines and journals
|
No-business related subscriptions
|
|
Wages and salaries
|
Staff (including family where duties genuinely carried out)
|
Proprietor’s own drawings and gratuitous wages to family
|
|
Bank charges and interest
|
Charges on business accounts and business related loans
|
Interest for personal overdrafts and loans
|
|
Other interest
|
Interest on business loans
|
Interest on income tax paid late and interest paid to proprietors
|
|
Insurance
|
Business related policies
|
Life assurance, self-employed NI, health and sickness insurance
|
|
Bad debts
|
Specific bad debts from business transactions
|
General provisions and debts written off voluntarily
|
|
Accountancy fees
|
Normal business related fees
|
Costs of unsuccessfully defending an HM Revenue & Custom investigation
|
|
Legal fees
|
Most business related advice
|
Partnership agreements, company formation, property acquisition and renewing long leases
|
|
Personal expenditure
|
Modest subsistence expenses in certain cases when working away
|
Lunches, private expenses and bills, gifts, clothing (unless a uniform)
|
