Baffled by business expenses P1

Posted Jul 15, 2018

Baffled by business expenses?

Part One: Allowable expenses

Maintaining a record of costs is essential to keeping track of the health of your business’ finances, but business expenses can be a total minefield.

From stationery and IT equipment to staff uniforms and client entertainment, you’re going to generate all sorts of costs in the day-to-day running of your business. But how do you know which costs you’re entitled to claim for when you submit your tax return?

HMRC call the costs you can claim “allowable costs”. These are the costs that are wholly and exclusively for the purpose of running the business. Such expenses tax deductible, meaning they reduce the amount of your taxable profit and hence you tax bill. Most businesses will have some or all of the following costs.

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