Tax and NI

7. Handle with Care

Some expenses just do not count. They cannot be deducted when calculating your profit figure, even though they may seem like perfectly necessary and legitimate business costs.

7.1 Personal expenses - including living expenses, ordinary clothes, and travel to and from your regular place of work.

7.2 Entertaining - including any food or drink bought for clients.

7.3 Certain professional fees - including the costs of forming a company and the costs of obtaining a lease.

7.4 Depreciation - instead, you claim capital allowances (see 8).

7.5 Fines - including parking tickets.