Disallowed Expenditure - Private Expenditure of Sole Trader

Question 1

Define allowable expenditure

Answer 1

Expenditure incurred wholly and exclusively for trading purposes, not specifically disallowed by legislation

Question 2

Expenditure may not be wholly and exclusively for trading purposes if…

Answer 2

• it is too remote from the purposes of trade
• it has both a trade and non-trade purpose

Question 3

Which bit is disallowable in the duality principle?

Answer 3

Private use