Claiming all your business costs against your profit is essential for ensuring that you pay the right amount of tax.
But just what is an allowable business cost?
Here are five Golden Rules to follow ensuring that you claim the right costs….
- Was the cost incurred wholly and exclusively for the business?
- If you didn’t have the business would you still have incurred the cost?
- Have you followed the HMRC rules when recording the cost in your accounts?
- Is there any personal element of the cost that needs to be excluded?
- Acid Test – Would you be able to stand up in front of an HMRC Inspector and justify the cost as a true business expense?