A non-deductible expense is an expense that you can’t subtract from your income to reduce your Self Assessment tax return bill. It’s usually pretty straightforward to work out what qualifies as a business expense (for example, renting your office or buying equipment), but some expenses can be more of a grey area. HMRC is very strict on what qualifies as an allowable expense.
Listed below are are some examples of non-deductible expenses:
Some things you use for your business, such as a mobile phone, you might also use for personal use. That’s why you may have to work out the part of that item that is a non-deductible expense. For example:
We’ve written a helpful guide to eligible expenses, so read more about them today!
We understand that figuring out your accounts, expenses and tax returns can be complex and time-consuming, so contact our team for a consultation and support with your accounts!