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Frequently asked questions on expenses

27/06/2018 11:05:25
Q: Can I claim employees’ uniform costs as a business expense?

A: Yes, this would be classed as a business expense.

Q: If I go to a café to meet a customer for coffee can I claim the drinks bought as a business expense?

A: These specific items would fall under those you can't claim for if you're self-employed. Please see the following link for more information: Expenses if you’re self employed

Q: When travelling abroad for work can I claim train, flights, hotel and car hiring costs as a business expense?


A: All travel expenses are allowable as long they are solely for business. You cannot claim for any personal travel or expenses not in accordance with your business. Please follow the attached link for further information regarding travel and subsistence: Business Income Manual

Q. What training can be claimed as an expense?

A. You can claim for expenses for refresher training but not for first time training. The expense must be wholly and exclusively for the course of your business. You can find more information on GOV.UK by accessing the following link: Business Income Manual


If you have more questions about expenses after reading this post. Please create a new topic by clicking the back button and selecting 'New Topic' in this forum and then adding your question.

This message was edited 2 times. Last update was at 02/07/2018 11:24:24

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Frequently asked questions on expenses

27/06/2018 14:01:39
Q: I work for a charity, can I buy alcohol (wine) gifts to volunteers or supporters and claim on expense? will there be any tax implications?
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Frequently asked questions on expenses

28/06/2018 06:38:46
Thank you for your query. I am referring it to our technical advisers and will let you know the outcome as soon as possible.
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Frequently asked questions on expenses

29/06/2018 11:09:38
Hello, I am from Scotland / my companies registered office is also in Scotland. Recently, I managed to get some work as a contractor in London - I would appreciate your guidance on the following :

[1] I rented a sharing accommodation in London and pay monthly rent - please confirm if this is allowable as my business expenses?

[2] I travel every day from this rented accommodation to the place where I am working as a contractor, please confirm if this is allowable business expenses - I am not acting as a direct employee and this is not my permanent place of work;

[3] I also travel back once in a month to my home in Scotland either by plane OR by car, my residential address is also my registered office address for my company, I then do some work, and try to find other contracting work during my stay in Scotland, please confirm if this travel by car and plane are also my business expenses? ALL of my other colleague in similar position are already claiming these expenses since last 10 years as their business expenses, but I need to confirm with you please advise!

Thank you in advance,

Vpn
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Frequently asked questions on expenses

29/06/2018 12:02:00
Thank you for your query. I am referring it to our technical advisers and will let you know the outcome as soon as possible.
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Frequently asked questions on expenses

29/06/2018 12:22:16
This is a reply for the question on charities posted 27/06/2018.

Please see the response from our technical adviser below:

"There are possible varying answers here, depending on what tax the charity is accountable for.
Volunteers are different to supporters and the supporters may or may not be affected by Gift Aid.

Charities are treated as companies for tax purposes. The tax implications of trading are different for direct taxes (Income Tax and Corporation Tax) and VAT.
However, Charities may claim exemption from tax on most forms of income and capital gains, if they’re applied to charitable purposes

Trading and business activities- basic principles

Non charitable expenditure

There may be tax or status implications for the volunteers or the charities if gifts or payments are a benefit-in kind.

Volunteer placements, rights and expenses "

Kind regards,

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Re:Frequently asked questions on expenses

02/07/2018 09:50:22
Hi

1) This would not be an allowable expense. They will not be able to claim for their rented accommodation

2) See guidance regarding temporary workplace. If this qualifies as a temporary workplace then they can claim for the travel: Employment Income Manual

3) Travel back to Scotland again would not be an allowable expense.

This message was edited 1 time. Last update was at 02/07/2018 11:21:58

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Re:Frequently asked questions on expenses

10/10/2018 12:33:52
Hi I'm landlord of property my boiler has broken down need new one like for like under what heading do I put there expenses on tax return....also on employment section I'm employed not self employed previously in this field my income and tax was already populated from PAYE...so you tick yes its correct or not why has this now changed that you need input details ?????
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Re:Frequently asked questions on expenses

12/10/2018 06:38:25
Hi raj,

Thank you for your question.

The cost of replacing your boiler can be put in the property income section under the heading “Property Repairs and Maintenance.” The income and tax deducted from your employment no longer pre-populates the Employment section of your return. These details can be found on your P60 or P45 that you should have received from your employer.

I hope this helps
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Frequently asked questions on expenses

15/10/2018 09:55:03
Can I claim 10% of rent as "wear and tear" on a fully furnished rented property?
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Re:Frequently asked questions on expenses

15/10/2018 12:06:14
Thank you for your question.

Please note that the 'Wear and Tear' allowance was actually abolished as from 6 April 2016. This has been replaced by the 'Replacement of Domestic Items Relief.' I am assuming that your question does not relate to the tax years prior to 2016-17. Unlike the 'Wear and Tear' allowance, for the Replacement of Domestic Items relief to apply the dwelling house can be unfurnished, part furnished or fully furnished. However, an expense must actually be incurred on purchasing a replacement domestic item, ‘the new item’.

Please refer to the guidance here for further information:

Reform of the wear and tear allowance
Income Tax when you let property: work out your rental income

I hope this helps.
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Frequently asked questions on expenses

14/03/2019 11:07:44
I work outside and on cold and rainy days I stay at home .I put the heating and stay warm. Can I claim any additional costs during these days.
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Re:Frequently asked questions on expenses

14/03/2019 17:09:07
Hi,

Where an individual is self employed and works from home, then they may be able to claim a proportion of their household costs depending upon the time spent actually working at home. Where your job does not involve any requirement to work from home, you are not entitled to claim any expenses in relation to your household bills.

From your question, there is no indication that any working from home is involved so you cannot claim any of your additional costs.

Thank you.
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Frequently asked questions on expenses

29/04/2019 14:12:48
Hello there, I recently needed physio therapy and without it have limited mobility- can I claim the fees against expenses? I’m a sole trader as a musician.
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Re:Frequently asked questions on expenses

30/04/2019 06:42:28
Hi,

No, you are unable to claim these as expenses as these are not purely related to the business and are more personal expenses.

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