Allowable expenses

Alan Heywood & Company can provide assistance to self-employed people in the London area on allowable expenses and other tax and financial issues...

We are often asked: "What expenses can I claim now that I am self employed?".

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

Expenditure on plant and machinery for most small businesses is likely to be covered by the annual investment allowance of up to £1 million.

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 us if you have any queries about the allowability of specific expenses.

If you are self-employed in the London area and would like advice on claiming allowable expenses, contact Alan Heywood & Company.

Have we convinced you yet?

Please feel free to get in touch via phone email or our quick contact form.

We offer initial free consultations simply contact us to find out more.

Copyright

© 2019 Alan Heywood & Company. All rights reserved.

Alan Heywood & Company, 78 Mill Lane, London NW6 1JZ

We use cookies on this website, you can find more information about cookies here.

Contact Us

Please call:
020 7435 0101

Quick links

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

Alan Heywood & Company LLP registered in England and Wales (CC00404707). Registered office 78, Mill Lane, London, NW6 1JZ