A selection of tables on:

  • expenses that are most commonly deducted in calculating company or self-employment profits for tax; and
  • deductible property expenses.
 Expense  Company  self-employed
 wages and salaries of staff you employ  Y  Y
 wages of yourself (you are an employee)  Y  n/a
 drawings and class 2 and 4 national insurance  n/a  N
 Dedicated premises: heating, lighting, cleaning water, rent, rates  Y  Y
 A share of heating, lighting, insurance etc if working from home  Y  Y
 Subsistence when working away from home  Y  Y
 Client entertaining  N  N
 Travel costs incurred  Y  Y
 Travel from home to office of employees or self  N  N
 Administrative costs: insurance, legal fees, accountancy  Y  Y
 Business telephone, postage, stationery  Y  Y
 Pension contributions  Y  Y

For the self-employed any expenses wholly and necessarily incurred for the business are deductible.  For items such as cars, telephones, computers and premises a proportion of the cost is claimed based on the ratio of business to private use.

Property letting

 Expense  Holiday lets  Buy-to-let
 water rates, ground rents and council tax  Y  Y (i)
 gas and electricity  Y  Y
 repairs and redecoration  Y  Y
 building and contents insurance  Y  Y
 mortgage interest (but not capital repayments)  Y  Y
 wages of gardeners and cleaners  Y  N
 letting and estate agency fees  Y  Y
 legal and professional fees connected to letting  Y  Y
 wear and tear of furniture  Y  N
 publicity and advertising of the property  Y  Y

(i) deductible if the tenant does not pay.