• H & S Accounting Ltd

Sole Trader Allowable Expenses

I am often asked, what counts as a business expense for sole traders? I have outlined below some of the most common expenses you should expect to incur.




Professional fees Accountancy

Solicitors

Surveyors

Architects Advertising and business entertainment Newspaper ads Online ads Website costs Ad printing costs

General advertising costs

Financial charges Bank, overdraft and credit card charges Hire purchase interest and leasing payments

Alternative finance payments Interest on bank and business loans

Car, van & travel Car and van insurance Repairs Servicing Fuel Parking Hire charges Vehicle licence fees AA/RAC membership Train, bus, air and taxi fares (please note, if you use the mileage method for travel expenses, the above costs are irrelevant)

Office costs Phone Mobile

Internet

Email and fax running costs

Postage Stationery Printing

Small office equipment costs Computer software

Filing systems

Cost of goods Cost of goods for resale Raw materials Direct cost of producing goods

Rents, rates, power, insurance Rent for business premises

Business and water rates

Light, heat, power

Property insurance

Repairs and renewals Repairs and maintenance of business premises and equipment

Renewals of small tools and items of equipment

Salaries and wages Salaries Wages Bonuses Pensions Benefits for staff or employees Agency fees Subcontract labour costs

Employers’ NICs etc.

Other expenses

Insurance costs Licensing costs

Miscellaneous sundries

Subscriptions

Professional memberships

Capital allowances You can claim capital allowances for certain items that you can't claim as an allowable expense, for example: • plant and machinery – including cars, vans, computers, tools

• fixtures and fittings – including shelves, furniture, fittings

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