| Allowable business expenses for tax purposes include | | | | home for business purposes. |
| the cost of goods bought for resale including the cost | | | | Repairs and maintenance of tools and equipment |
| of raw materials and all costs of production after | | | | would also include renewals of smaller items of |
| adjusting the cost of sales for changes to the opening | | | | expenditure on tools and equipment where these |
| and closing stock of stock including stores being held, | | | | items had not been capitalised as fixed assets. |
| work in progress and finished stock. | | | | General administrative costs of running the business |
| The adjustments of opening and closing stock values | | | | would include telephone and stationery costs, fax and |
| being to adjust the cost of sales to represent the cost | | | | mobile phones, printing and postage, computer |
| price of the goods included in sales turnover. Also | | | | software and small office equipment costs that have |
| included in the calculated cost of sales are | | | | not been capitalised. Other general costs may include |
| commissions paid and discounts given to suppliers. | | | | trade and professional journals and subscriptions |
| Contractor costs are allowable at the gross invoiced | | | | including the expenses of employees in respect of |
| value before deduction of any with holding taxes. | | | | these items. |
| Where sub contractors costs and expenses directly | | | | Advertising and promotion costs in all media areas |
| produce goods or services for resale they may also | | | | such as newspapers, magazines, websites, television, |
| be considered for inclusion in the cost of sales. | | | | posters, mail shots and free samples are allowable. |
| All employee costs are included as allowable costs at | | | | Internet website costs including hosting and promotion |
| the gross value paid including salaries and wages of | | | | would be advertising expenses. |
| both employees and directors of the business and | | | | Business bank interest payable including business loans |
| temporary staff and consultants employed by the | | | | and financing arrangements on overdrafts and loans |
| business. In addition to the gross wages businesses | | | | plus bank charges and business credit card charges |
| may also claim employment costs such as fees paid | | | | are claimable. Other allowable expenses would include |
| to employment agencies, bonuses paid to staff and | | | | hire purchase interest, leasing payments and other |
| the costs and contributions made to pension schemes | | | | finance payments. Financing costs also including the |
| on behalf of staff employed. | | | | administration charges for the potential various finance |
| Employer national insurance and additional medical | | | | arrangements. |
| insurances are allowable as business expenses. | | | | Legal and professional expenses to be claimed are |
| Travelling and distribution costs are permissible | | | | accountants, solicitors, architects, surveyors and other |
| business expenses and include running costs of cars, | | | | fees from members of professional bodies including |
| vans and lorries which would consist of fuel and | | | | professional indemnity insurance. |
| servicing costs, repairs, insurance, vehicle licence fees | | | | Specific sales income which has been included in sales |
| and membership of breakdown organisations. Also | | | | turnover in the current or previous years and remains |
| included in travel costs would be bus, train, air and taxi | | | | unpaid and unlikely to be recovered would be |
| fares, and hotel room costs including private | | | | designated as a bad debt and may be deducted as |
| accommodation and meals or subsistence allowances | | | | an expense but also has to be written back if the |
| in respect of food during the business trip. | | | | money owed is subsequently recovered. |
| Allowable expenses fro property include business rent, | | | | Depreciation on fixed assets that have been |
| rates and other invoices for use of the property | | | | capitalised and the profit and loss on sale of assets |
| including local government charges for general rates | | | | are not claimable but instead replaced with capital |
| and water rates. The cost of maintaining the property, | | | | allowances which write off the costs of those fixed |
| repairs and maintenance and environmental expenses | | | | assets over a period of years according to the tax |
| include light, heat and power costs plus expenditure on | | | | rates and rules applicable. |
| property insurance and security arrangements. | | | | Any other costs properly incurred in the business may |
| The same costs as applicable to use of the home are | | | | also be claimed subject to specific items disallowed |
| also claimable in so far as the extent of the use of the | | | | under the tax authority rules. |
