Tax Tip Week 9 – Be sure you can deduct an expense against profits
Every business has expenses it may deduct against corporation tax on profits. Needless to say, not everyone is an expert when it comes to accounting for them.
To be sure, the best test is to apply :-
"Are the expenses you are claiming against tax reasonably incurred, wholly and exclusively incurred"?
It is a decision every director of a Limited Company will need to take when accounting for their expenses and the overheads of the business.
You need to be certain how to apply this, otherwise you could end up with a hefty penalty.
See the full details and the possible pitfalls in our guidance on Ensuring the expenses you deduct against profit are allowable