as a sole trader can you buy a load of cat food

tod123

give it too a local cats home, and mark it up as an expense? if so how much can you buy?

Annisele

Short answer: no.

Slightly longer answer: if you can persuade HMRC that the purchase of the cat food was wholly and exclusively for the purpose of your trade, then they might allow it as a tax deductible expense. I'm struggling to see quite how that would apply.

What is it that you're trying to achieve here? If you want the cats home to have cat food, wouldn't it just be easier to give them the cash? Via gift aid if they're a registered charity?

If you're trying to reduce the tax you pay, see an accountant - he'll likely come up with a much better scheme.

terra_ferma

My understand from a course I attended is that if as part of your business you trade in cat food then you can donate it charity and deduct from you taxable income.

HRMC's website states:

Your business can get tax relief if it makes a gift of equipment or trading stock to a charity or Community Amateur Sports Club (CASC). You'll be able to reduce the taxable profits your business makes by the cost of the gift made so you'll pay less tax. This applies whether you're in business as a sole trader, a partnership or a company.

More info here:
http://www.hmrc.gov.uk/businesses/giving/gifts-in-kind.htm

....which means, as said above, that it's not an allowable expense if your business is not related

jamespir

tod123 wrote: »

give it too a local cats home, and mark it up as an expense? if so how much can you buy?

aww tod for a moment i thought you was thinking about the poor kitties but no you was only thinking about your tax allowance :rotfl::rotfl:

Owain_Moneysaver

If you put stickers with your business name on it, it might be classed as 'gifts for advertising purposes' and thus deductible.

terra_ferma

jamespir wrote: »

aww tod for a moment i thought you was thinking about the poor kitties but no you was only thinking about your tax allowance :rotfl::rotfl:

In these tough times you can't blame someone to try and save where they can. It's still a nice gesture because tax relief is only worth 20% of the cost.

AliceJenkins

Yes you can, just say it was for promotion.

oldtoolie

Look here https://www.hmrc.gov.uk/businesses/giving/self-employed.htm

Charities would prefer the cash so they can buy what they really need as opposed to what you think they need.

spadoosh

yeh, cant you give it as cash?! Providing its a local charity its tax deductable. Either way though a donation of food or money will leave you more out of pocket than what your expecting to be taxed?!?

As others have said you couldtry the advertising/promotion route but if your company isnt affiliated with cats or food it could be hard work explaining wwhy you sent 1000 tins to a cats home advertising your abertoir (sp). <example>