Insurance as a business expense

fuzzball172

is professional liability insurance an allowable expense for a sole trader?I seem to remember reading somewhere on the tax return that insurance was not deductable.

thanks in advance

fengirl_2

Yes, professional liability insurance must be included in your accounts - its an expense of the business. Something like life assurance would be personal and should not be included in the accounts.

fuzzball172

Thanks fengirl, I will have to read my tax return more closely next year. Shame because I have not been claiming as an expense

fengirl_2

Nothing to stop you amending previous years returns to include this item.
You really need to keep records as you go along and then produce your annual accounts, making sure everything balances before you complete your return.