Allowable Expenditure
The general rule to remember is that in order for an expense to be allowable it must be
wholly
exclusively
and necessary
for the purposes of trade.
The table below gives you expenditure categories and whether they are allowable
Purchases Allowable
Subcontractor costs Allowable
Direct labour Allowable
Carriage Allowable
Discounts allowed Allowable
Commissions payable Allowable
Distribution costs Allowable
Wages and salaries Allowable
Pensions Allowable
Employer's NI Allowable
Temporary staff and recruitment Allowable
Staff training and welfare Allowable
Training Allowable if you are improving your existing skills. Not allowable for training where you are setting up a new business.
Travel and subsistence Allowable as long as the whole trip is business
Motor expenses Allowable
Entertaining Staff entertaining is allowable up to certain limits Client entertaining is not allowed
Gifts Gifts which are not food, drink, cigarettes, tobacco, cigars, gift vouchers are not allowed. There is a maximum spend of £50 to any one person.
Rent & Rates Allowable
Use of home Allowable
Service charges Allowable
Light and heat Allowable
Cleaning Allowable
Telephone and fax Allowable
Postage Allowable
Stationery and printing Allowable
Courier services Allowable
Information and publications Allowable
Subscriptions Allowable
Bank charges Allowable
Insurance Allowable
Equipment expensed Allowable
Equipment hire Allowable
Software Allowable
Repairs and maintenance Allowable
Depreciation Allowable
Exchange rate differences Allowable
Bad debts Allowable
Sundry expenses Allowable if they are wholly, exclusively and necessary
Accountancy fees Allowable
Solicitors fees Allowable
Consultancy fees Allowable
Management fees Allowable
Advertising and PR Allowable
Other legal and professional Allowable
Plant & machinery Allowable
Interest payable Allowable
Clothing Allowable if it is safety wear or has a company logo
Parking fines Not allowed
If you have costs, such as a mobile phone, where there is personal use. You can only claim the personal use and not the whole amount. For example you might claim 50% depending on how much you think you use it.
If you have any questions on certain expenditure, then feel free to ask.