Discover the difference between allowable and disallowable expenses. We'll also talk about the common expenses you can claim on your income tax and how they appear on the Self Assessment tax return (SA103F).
What are allowable expenses?
Allowable expenses are costs that are essential and directly related to running your business. These expanses can be deducted from your taxable income, reducing your overall Income Tax liability.
Allowable expenses do not include money taken from your business to pay for personal purchases.
What are disallowable expenses?
On the other hand, disallowable expenses are costs that are not considered necessary or solely for business purposes. These expenses cannot be deducted from your taxable income.
For more information, read the HMRC guide.
Allowable expenses for Self Assessment tax return (SA103F)
Here's a breakdown of the deduction categories you can claim as allowable expenses on your Self Assessment tax return. It includes the SA103F box numbers, QuickBooks account detail types, and information about what expenses you can deduct and what you can't.