Please enable JavaScript.
Coggle requires JavaScript to display documents.
Allowable and disallowable expenditure (disallowable. (Donations to…
Allowable and disallowable expenditure
Expenditure is generally allowable if it is wholly and exclusively for the purposes of the trade.
specifically allowable such as
legal costs
on the renewal of a
short lease
.
![]
income breach of contract
Maintenance and repairs
The creation of, or increase in, a specific provision, for example relating to a specific debt, is allowable
and does not require adjustment. A reduction in a specific bad debt provision is trading profit and so
does not require adjustment.
Trade bad debts
entertaining staff is allowable.
Gifts to employees
Gifts of trade samples
c
ost of educational courses
local charities :
Subscriptions to trade and professional associations
Gifts of trading stock or used plant and machinery to charities or UK educational
Parking by an employee allowable
Interest paid on money borrowed for business
Irrecoverable VAT
Earnings paid to employees are generally allowable
Redundancy payments
compensation
disallowable.
Capital expenditure (long term assets)
Improvement or enhancement
Depreciation
sloe trader Appropriations of profit sole trader paying for himself or high salary to his family
Link Title
The creation of, or increase in, a general provision is disallowable and must be added back to the
accounting profit. Conversely, a decrease in a general provision must be deducted from the accounting
profit
Non-trade bad debts
Donations to national
Political donations
Gifts to customers not food,
drink, tobacco or vouchers exchangeable for goods
fines and penalties are disallowable
Interest on late payment of tax
Legal and professional fees from dealing with an HMRC capital assets
don't take clients for dinner
