Tax treatment of bank account fees

sclairetaylor

Hello,
I work part time PAYE but earn a few grand a year on a self employed basis. All declared in a self-assessment. I have recently moved to a fee paying bank account which pays interest.
I pay tax on this interest income directly and will be declaring it (it's significantly more interest that would be available in a non fee paying account) within my tax return.
One questions: can I include the bank account fees in my self-assessment return as an expense? Either from the perspective of "I only gain the income by paying a fee". Or are account fees allowable expenses for a self employed person (as they are for specific business accounts for sole traders)?
If anyone else has considered this or has information, let me know.
Thanks
Claire

Archi_Bald

sclairetaylor wrote: »

(it's significantly more interest that would be available in a non fee paying account)

are you sure about that? What is the AER before and after after you have taken off the fee?

sclairetaylor wrote: »

One questions: can I include the bank account fees in my self-assessment return as an expense?

doubt it very much as a current account is a personal account, not to be used for business, and you cannot claim private expenses as business expenses.

Refer to the T&Cs of your current account, and what might happen if you are in breach of contract.

bowlhead99

sclairetaylor wrote: »

Or are account fees allowable expenses for a self employed person (as they are for specific business accounts for sole traders)?

If the account expense is incurred wholly, exclusively, and necessarily in pursuit of your business activities there is no issue claiming it.

If it is also a personal account for non-business use you would be on dodgy ground unless you only had an immaterial level of personal transactions in and out of the account.

Imho.