Allowable Expenses

Allowable Expenses

Being self employed, you are able to claim business expenses and set these off against your trading profit which are incurred “wholly and exclusively” in relation to your business. This will reduce your profit and tax bill.

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 common types of expenditure that may be allowable. The list below should not be seen as an exhaustive list, for further business advice, we will happily assist you with your queries. What is allowable depends on the facts in each case.

  • Lab fee
  • Associate Fee (Professional Subscription Fees)
  • Cost of materials
  • Staff salaries
  • Fuel
  • Repairs and servicing
  • Insurance (e.g. PI)
  • Books and journals
  • Computer costs
  • Printing, postage and stationery
  • Bad debts
  • Courses and conferences
  • Professional subscriptions
  • Advertising
  • Telephone
  • Accountancy fee
  • Cleaning
  • Finance interest