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Taxionary

Non-deductible

[nɒn-dɪˈdʌktɪbᵊl]

Term

Summary:

A non-deductible is a type of expense that cannot be used to reduce your tax bill. HMRC are very strict on what they will allow as an expense.

More detail:

A non-deductible is an expense that cannot be claimed as a tax deduction. This means they cannot be used to reduce a tax bill.

Self-employed individuals have the ability to deduct certain expenses from their tax bill. HMRC only allows expenses which are "wholly, exclusively and necessarily" in the operation of their business. Items like meals for yourself and travel costs between home and your workplace count as non-deductibles.

These Self-employed individuals inform HMRC of these expenses through a Self Assessment. The online deadline for submitting a Self Assessment is 31st January, the year following the end of the Tax Year.

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