The decision maker may allow as a deduction only the portion of
the expense attributable wholly and exclusively to the business.
The decision maker should accept the evidence of
1) the applicant
or
2) an accountant
or
3) any apportionment already agreed with the Inland Revenue
unless it is self-contradictory or inherently improbable or
there is other more compelling evidence to the contrary.
See DMG36001 if the business is a partnership.
A self-employed person uses a car for business and private use.
The total cost in the assessment period for tax, fuel, insurance,
servicing and repairs is £3,600. Evidence is provided that the
Inland Revenue have agreed that apportionment is 75% for business
use and 25% for personal use.
The decision maker decides that the expenses have been
reasonably incurred and allows £2,700 when calculating the
claimant's net profit.
A self-employed hairdresser works at home. Accounts are provided showing that 60% of telephone calls are for business purposes and that 20% of fuel bills are for heating and lighting the room used exclusively for hairdressing. The decision maker is satisfied that this is reasonable and allows 60% of the telephone bill, both calls and rental and 20% of the fuel bills, (including the standing charges) as expenses when calculating the net profit.
