Allowable expenses tier list
Lesson 6 of 12 in our free Side Hustles & Self-employment guide: a 5-minute money game with the key points below.
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Questions you'll answer
Mo's phone is used about 20% for business. What can he generally claim?
Jas earns £6,000 from nails. Allowable expenses: £1,800 products, £300 training, £150 business share of phone. Taxable profit?
Quick facts
- Stock bought to resell → Allowable. Core cost of the business.
- Postage and packaging for orders → Allowable. Needed to deliver what you sell.
- Selling fees charged by the platform → Allowable. A direct cost of making sales.
- A new outfit for Mo's birthday → Not allowable. Personal. Wearing it in one listing photo doesn't change that.
- Parking fine on a stock-buying trip → Not allowable. Fines are never allowable. Nice try.
- Garment rail used only for stock → Allowable. Equipment used just for the business counts.