There are many hoary old chestnuts in the world of taxation, one of which is the deductibility (or not) of travelling expenses incurred by the self-employed. For an expense to be deductible in computing a self-employed individual’s taxable profits the expense must have been ‘wholly and exclusively’ incurred for business purposes; must not constitute a ‘capital’ expense; and must not be ‘specifically prohibited’ as a deduction by statute. Whilst these principles are prima facie clear, their application is perhaps less so.
In the February issue to ‘Tax Insider’, Malcolm Finney examines the tricky and murky area of the deductibility (or otherwise) of travel expenditure by the self-employed.
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>> Travelling Expenses For The Self-Employed: Recent Cases
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