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Question re Expenses (particularly entertainment) from a Sole Trader
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Bertiesmalls
Posts: 17 Forumite
in Cutting tax
I'm aware that I can charge my clients my mileage expenses at a level that we both agree on, then offset 40p for the first 10.000 miles etc from my taxable income.
I note that Entertaining expenses are not tax deductable - as I'm doing some Sales Consulting which may/will involve an element of entertaining on my Client's behalf, is it acceptable to invoice my Client for the cost of the entertaining ? Does that then mean that I pay tax on this part of my income ?
What about other expenses ?
Obviously this is on the basis that my client will pay for them !!
Not sure how it works - too used to PAYE and getting all my expenses paid 100% !!
One further question - I've set up a business bank account, do all my expenses need to be paid out of this account or can it be a mixture i.e I pay my phone etc from my current account and travel from the business account or is it easier to pay all expenses through my current account but show them as tax deductable ?
I note that Entertaining expenses are not tax deductable - as I'm doing some Sales Consulting which may/will involve an element of entertaining on my Client's behalf, is it acceptable to invoice my Client for the cost of the entertaining ? Does that then mean that I pay tax on this part of my income ?
What about other expenses ?
Obviously this is on the basis that my client will pay for them !!
Not sure how it works - too used to PAYE and getting all my expenses paid 100% !!
One further question - I've set up a business bank account, do all my expenses need to be paid out of this account or can it be a mixture i.e I pay my phone etc from my current account and travel from the business account or is it easier to pay all expenses through my current account but show them as tax deductable ?
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