27/05/2024
Are you trying to claim these?
Tax returns are our bread and butter, but the olive bread that came with that client dinner, sadly doesn’t belong on your tax return. Let us explain.
Here are three expenses that sole traders might mistakenly believe they can claim on their UK tax returns, but which are actually not allowable:
Ordinary Clothing: While you can claim for uniforms and protective clothing necessary for your work, you cannot claim for everyday clothing that you might wear to work. This includes suits or general business attire that isn't specific to your job requirements.
Entertainment Expenses: Costs incurred from entertaining clients, potential customers, or existing customers are not allowable for tax relief. This includes expenses for meals and events that businesses might believe help in building professional relationships.
Legal Fines and Penalties: Any costs or fines incurred for breaking the law, including parking tickets or penalties for late filing of returns, cannot be claimed as allowable business expenses. These are considered personal responsibilities.
If these examples have highlighted the importance of understanding which expenses you are allowed to claim to avoid errors in your tax returns or potential issues with HMRC, we’d love to chat with you about how we can give you the reassurance and peace of mind that you need.
https://calendly.com/rebusbookkeeping-and-accountancy/15min
