Allowable expenses Flashcards
A trader removes £100 worth of goods from stock. The selling price is £200. How much is added back in the comp?
£200
A trader has services from his company totalling £50. How much is added back in the comp?
£0. services are not charged unless the company paid for them on his behalf.
A sole trader spends £12,500 on repairs to his shop to make them suitable for business use. Is this added back in the comp or is it allowable?
Added back in comp.
A reinforced door was purchased following a break in. Is this an allowable expense?
Capital.
Legal fees in connection with acquiring a shop - allowable?
No.
Is depreciation on a van which is held under a finance lease allowable expenditure?
Yes
A provision is made for repairs - is this allowable?
No
A member of staff is made redundant but the trade continues. Is this an allowable expense?
Yes
Mileage of 50p per mile totalling £500 is paid to an employee - how much is added back in the comps?
£0, however the employee will have the £50 go through his payroll and be taxed.
A donation is made by a sole trader for which he obtains gift relief - is this added back in the comp?
Yes
