Whether an expense is tax deductible or not depends on whether it is capital or revenue in nature, which is sometimes difficult to talk about in general terms. However, some of the categories of tax deductible expenses are listed below.
- Travelling (from home/Chambers to court etc.) - adjustment will be needed for private motor expenses, so keep mileage records. Yes really, every week. Keep a diary.
- Clothing and cleaning (but care is needed here).
- Telephone - adjustments will be needed for private use. Mobiles included.
- Legal literature/CPD.
- Chambers rent and clerks’ fees, including secretaries and payments to other barristers.
- Subscriptions (Bar Council, Circuit, Bar Associations etc.).
- Use of home as office (to be discussed with your accountant) - if you are going to claim for a spouse’s secretarial/receptionist services, then pay them monthly via a proper payroll (we can do it for you).
- Postage, printing, stationery and photocopying.
- Professional indemnity insurance premium.
- Interest on business, car, tax and working capital loans.
- Capital allowances on equipment: computers, motor vehicles etc.
- Other (bank charges, accountant’s fees etc.).
E-mail: mark@malthouse.com or steve@malthouse.com
Date:11 July 2006
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