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What expenses are not deductible for tax purposes?#AskAMS

Here is a list of certain expenses that aren’t tax deductible – but which regularly get claimed, or questioned, by clients:

Clothing

Unless it’s protective clothing, or a uniform, clothing is not tax deductible. 

Spectacles

Eye tests are claimable for workers using PC’s, but the cost of glasses cannot be claimed for because they are generally not worn ‘wholly and exclusively’ for work.  Safety glasses worn only at work could be an exception.

Entertaining

Entertaining potential/existing customers can be put through a business’s accounts – and reimbursed to a director/employee.  If a meal out is part entertaining and part subsistence for a director/employee, it is worth calculating the split between the two.

Dividends

We sometimes get asked, ‘if I pay more dividends how much tax will that save me?’  Unlike wages and salaries, dividends are not tax deductible against a Company’s profits. 

Removal costs

Removal expenses (up to £8,000) paid for by an employer can be tax deductible, but only where the employee/director is starting new work in a new area, or if the work place changes. 

Grocery bills

A director/employee can claim for meals bought whilst at a temporary workplace, but food for working on site that is bought beforehand, cannot be claimed as it is not attributable to a work related journey.

Hire car and mileage

If you use a hire car in the business, you cannot also then claim the HMRC Approved mileage rates (of 45p and 25p) – because these rates are only intended to cover the wear and tear on personally owned vehicles.

https://www.ams-accountancy.co.uk/blog/non-tax-deductible-expenses/

AMS Accountancy Swindon and Wiltshire

AMS Accountancy Ltd

AMS Accountants in Swindon provide a complete accountancy service for small businesses in Wiltshire and a monthly accountancy service for contractors throughout the UK.

Delta 606, Welton Road, Swindon, SN5 7XF

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