Decision Makers Guide - DMG35003

Allowable business expenses

Expenses which the decision maker should allow if the conditions in DMG35002 are met are all day-to-day expenses of a business including

• accountancy charges

• advertising

• cleaning of business premises

• difference between opening and closing stock (on accounts)

• discounts allowed to customers

• employees' wages before any deductions are made, including any wages payable to the domestic partner

• employer's contributions to employees' pension scheme

• employer's (secondary) Class 1 SS contributions

• heating and lighting (but see DMG35104)

• hire or rental costs (but not any capital or purchase elements - see DMG35104)

• interest payable under a credit sale, a consumer credit agreement or a hire purchase agreement (but not the capital element of payments - see DMG35019)

• legal fees associated with the business

• payment in kind for work done for the business - the monetary value is allowable

• rent and rates

• stationery

• stock purchases

• sundries, sometimes called miscellaneous items, which are small in relation to total allowable expenses provided that the decision maker is satisfied that no non-allowable expenses, for example for business entertainment, are included

• telephone, telex, fax etc (but see DMG35009)

• transport excluding any home-to-work costs - see also DMG35009 if a vehicle is used partly for private purposes

• VAT allowable (DMG31413).