Typical Expenditure by a Business (2)

Question 1

Trade or professional association subscriptions?

Answer 1

Allowable

Question 2

Charitable donation (Not under the Gift Aid)?

Answer 2

Small and made wholly and exclusively for trading purposes

Question 3

National/international charity donations?

Answer 3

Not allowable

Question 4

Charitable donation under the Gift Aid?

Answer 4

Not allowable

Question 5

Political donations?

Answer 5

Not allowable

Question 6

Legal and professional charges?

Answer 6

Allowable if connected with trade and not related to capital terms

Question 7

When are legal and professional charges specifically allowed by statue?

Answer 7

Cost of obtaining loan finance
Cost of renewing a short lease

Question 8

Interest payable?

Answer 8

Allowable on an accruals basis, therefore no adjustment is needed

Question 9

Lease rentals on cars with CO2 emissions exceeding 50g/km?

Answer 9

15% of the leasing charge not allowable

Question 10

Premium paid for the grant of a lease

Answer 10

Premium itself is disallowed as is any amortisation of the premium

Question 11

Allowable amount for premium paid for the grant of a lease

Answer 11

(((51-n)/50) * Premium) / n