When you are operating a business as a sole trader, you will need to complete a self-assessment return for your income. Self-employed income is taxable after deducting allowable expenses. Previously I talked about the expenses that a sole trader can claim but now I am going to tell you about the expenses that you cannot claim.
Non allowable expenses for sole traders include:
Your own wages and drawings, national insurance contributions and pension contributions.
Childcare costs. These can only currently be claimed through a limited company scheme.
Subsistence. You can only claim for hotel and meal costs if you have an overnight business trip. You cannot claim for other meals including lunches, snacks and coffee.
Any business entertaining including entertaining clients and suppliers and hospitality at events.
The purchase cost of business premises and any costs relating to a non-business part of your premises. Also the cost of improving and altering premises and large equipment.
Motoring costs like fines, purchase cost and travel between home and work.
Repayment of loans, overdrafts and other finance solutions.
Some professional fees like the legal costs of purchasing property and large assets. Also the cost of settling tax disputes and fines.
Payments to clubs, charities, political parties.
Cost of ordinary clothing even if you only wear it for work.
Personal use including goods bought for personal use, the personal proportion of your home costs if you work from home, personal phone calls on your mobile phone etc.
Marvelous, what a blog it is! This blog gives valuable facts to us, keep it
Hello, I log on to your blogs regularly. Your writing style is witty, keep up
the good work!
Pretty! This was an extremely wonderful article. Many thanks for supplying this info.
I am sure this post has touched all the internet viewers, its really really nice post on building up new website.
Thanks for every other great post. The place else may just anyone get that
kind of info in such a perfect manner of writing? I have a presentation next week,
and I am on the look for such info.
This is a topic that’s close to my heart… Many thanks!
Exactly where are your contact details though?
Thanks for finally writing about >What expenses can I not claim
when I am self-employed? « Business Accountant <Liked it!
This article is genuinely a good one it assists new
internet users, who are wishing for blogging.