FOUR ELMS BOOKKEEPING
Bookkeeper for small businesses in Yeovil, Sherborne, Langport, Wincanton, Somerton and surrounding areas of South Somerset and West Dorset.
Expenses disallowed when calculating trading profits for Corporation tax
EXPENSES MUST BE WHOLLY AND NECESSARILY INCURRED FOR TRADE PURPOSES TO BE TAX-DEDUCTIBLE
- Any depreciation on fixed assets such as vehicles, buildings, equipment etc.
- Dividends paid to shareholders
- Improvements to capital assets such as buildings (however repairs are allowable)
- Entertaining customers (entertaining employees is allowed)
- Gifts to customers are disallowed unless
Donations to national charities not made via GiftAid.(Corporate GiftAid is given gross and is an allowable expense.)
Donations to political parties
Legal fees relating to capital items owned by the business (except for fees incurred obtaining loan finance, obtaining patents or registering trademarks)
Legal fees relating to issue of share capital
Interest payable relating to non-trading activities can only be relieved against interest income (this includes
interest payable to HMRC)
Interest payable relating to loans used to buy rental properties can only be relieved against interest income, not against
Premiums paid for grants of leases.
Fines and penalties (except for reimbursement of those incurred by an employee while on duty)
- they cost less than £50
- the gift is not food, drink or tobacco
- the gift carries an advertisement for the business