»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp list which follows and the information contained in NIM21012 onwards was to help HMRC advise the applicant about what was allowable as a deduction in computing profits. »Ê¹ÚÌåÓýapp applicant had to carry out the actual calculation, however.

Unless the application was from a newly self-employed person, it was not usually necessary to calculate a net profit figure. Where, however, a Self Assessment and/or a Profit and Loss Account was not available, the following were examples of admissible expenses, subject to an adjustment, where appropriate, on account of private of domestic use. »Ê¹ÚÌåÓýapp list was not exhaustive but served as a guide in relation to any other item claimed as an expense

• Advertising costs (but the cost of a permanent advertisement such as a hoarding attached to the business premises is excluded. This would be a capital rather than a trading expense).
• Audit, accountancy and bookkeeping charges.
• Bad debts written off, provided that they are trade debts and not loans.
• Bank charges (interest and commission).
• Cleaning/laundry.
• Cost of debt collection.
• Depreciation (reducing value of vehicles, equipment, fixtures, fittings).
• Discounts allowed (by the trader as a rebate or reduction of the total sale price to encourage prompt payment of an account. »Ê¹ÚÌåÓýappy are a loss to the business and so count as an operating expense).
• Heating and lighting.
• Hire charges/leasing of equipment.
• HP interest (but not the basic cost of the item).
• Insurances.
• Legal costs, for example recovering debts, employeesâ€� contracts, disputes about trading contracts or breach of contracts.
• Mortgage interest on the business premises.
• Motoring expenses.
• Packaging of materials.
• Postage.
• Printing and Stationery.
• Professional charges.
• Protective clothing/overalls.
• Purchase/materials (the cost of goods bought for resale and of materials for manufacturing: normally shown in the Trading Section of the Trading and Profit and Loss account in assessing gross profit.
• Rates and water rates on business premises but not Council Tax.
• Renewals - this can include the cost of small items which might otherwise be regarded as capital expenditure, such as linen, crockery, cutlery and replacement of worn out tools by similar tools.
• Rent.
• Repairs to business premises, plant equipment, and so on.
• Sales promotions (for example trading stamps).
• Sundry expenses (miscellaneous small payments which do not warrant a classification of their own).
• Telephone charges.
• »Ê¹ÚÌåÓýappft (losses due to theft by staff or members of the public).
• Travel and hotel expenses on business trips aimed at obtaining business.
• Wages of employees and secondary National Insurance contributions.