Disallowable expenses

MoneyTreeMe
MoneyTreeMe Posts: 55 Forumite
10 Posts
edited 26 January 2021 at 8:44PM in Cutting tax
Hi,
After completing the allowable expenses section of the HMRC online self assessment, it takes me to page showing disallowable expenses... Do I really need to add up how much I spent on food everyday, the bits and pieces I bought from shops like games, clothes, gifts and so on during the entire tax year? Or can I leave the boxes blank and not add anything ?

What does HMRC want me to do here?  Do they mean 'disallowable business' expenses or 'disallowable everyday personal expenses like food/clothes etc'?

I am self employed sole trader who works from home... 

Comments

  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Disallowable means the private/disallowed portion of whatever you put in the normal expenses boxes.  So, say, if you put down your total mobile phone bills, say, £500, in the first section, and half the use was for private calls, you put £250 in the disallowed section.  Same with other costs.  You don't put anything in the disallowed section that wasn't in the first section.  Expenses which are purely private shouldn;t have been included in the first section anyway, so don't need to be put in the second disallowed section.
  • MoneyTreeMe
    MoneyTreeMe Posts: 55 Forumite
    10 Posts
    edited 26 January 2021 at 9:04PM
    Pennywise said:
    Disallowable means the private/disallowed portion of whatever you put in the normal expenses boxes.  So, say, if you put down your total mobile phone bills, say, £500, in the first section, and half the use was for private calls, you put £250 in the disallowed section.  Same with other costs.  You don't put anything in the disallowed section that wasn't in the first section.  Expenses which are purely private shouldn;t have been included in the first section anyway, so don't need to be put in the second disallowed section.
    Oh that makes sense!! I can't see an option on the online form about payments on account. I already have payments on account which I paid last year towards this year's tax... How do I carry them over towards this year's tax bill? 
  • You don't.  You file the return and then check your online account in a few days.

    That will show the amount due for 2019:20 and how it has been split into POA and Balancing Payment along with any POA due for 2020:21.
  • You don't.  You file the return and then check your online account in a few days.

    That will show the amount due for 2019:20 and how it has been split into POA and Balancing Payment along with any POA due for 2020:21.
    Ok,  will HMRC automatically reduce this year's tax by subtracting last year's payments on account which I paid July 2020?
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.8K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.8K Work, Benefits & Business
  • 619.6K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.