In order to attract a deduction in computing the profits of a trade or business any expenses must be incurred wholly and exclusively for the purpose of the trade. Capital expenditure is not an allowable expense (capital allowances are claimed on these costs), and certain other expenses are barred by statute. However, there are a number of expenses which, while deductible, also enjoy relatively favourable tax treatment.
If you find any of these of interest, please do discuss with us the detail of the arrangements as some are quite restrictive.
|Exempt amount per head||1||£150||£150|
|Long service awards|
|Minimum term of service||20 years||20 years|
|Value of gift||2||£50 per year||£50 per year|
|Payment in relation to first year benefit||3||50%||50%|
|Payment in relation to ongoing benefit||3||10%||10%|
|Maximum period for ongoing benefit||5 years||5 years|
|Household expenses contribution|
|Per week amount||5||£4||£3|
|Relocation expenses paid to staff|
|Minimum number of seats||9||9|
|Limit per gift||7||£50||£50|
|Sports facilities (Note 8)|
Do contact us if you would like further help or advice on this subject.