Allowable Expenses

Tax law says that an expense is allowable for tax if it is incurred ‘wholly and exclusively for the purposes of the trade’. If an expense is incurred for more than one purpose, i.e. business as well as personal use, a deduction for any identifiable proportion of the expense which is incurred ‘wholly and exclusively for the purposes of the trade’ is allowable. We have set out some of the types of expenditure that may be allowable.

Home Usage

HMRC allows a certain proportion of using home as office depending on the time spent for the purpose of trade. We would normally consider the rateable value of the property which is being used for trade.

Professional Subscriptions

e.g. MDU, MPS, BMA, GMS, RCGP

HMRC always allow a tax deduction for the payment of professional subscriptions.

Motor Expenses

Motor expenses can be claimed on a car assuming it is used for the purposes of business. The expenses have to be apportioned so that only those incurred ‘wholly and exclusively for the purposes of the trade’ are allowed. We will assist you in deciding how much your car is used for business travel (eg 80% business, 20% private)

This can then be applied to the total expenses for the year or period of assessment. Below is a list of expenses that can be claimed.

• Petrol and oil
• Repairs and servicing
• Insurance
• Road tax
• AA/RAC subscription
• Parking
• Cleaning
• Finance interest

Other Expenses

Many other types of expenses can be claimed by Consultants. We provide our Consultant clients with detailed checklists and advice to ensure that all allowable expenses are claimed.