items allowable to claim through limited company

kdowling

I have a friend who is a director of his own limited company and he claims for everything from petrol, servicing his car to clothes and books through his company.
Is this allowed? What everyday items are you allowed claim for?

ssbob

Anything that is wholly and exclusively used for the purposes of the business.

Not sure would your friend pass a revenue audit depending on how flippent he is with his expenses.

Bigcheeze

kdowling wrote: »

I have a friend who is a director of his own limited company and he claims for everything from petrol, servicing his car to clothes and books through his company.
Is this allowed? What everyday items are you allowed claim for?

It's a self-assessment tax system so why doesn't he go the whole hog and not pay any tax. Just because he's doing it means he'll get away with it.

EamonOSullivan

The exact phrase from old case law is ''Wholly, exclusively and necessarily'' for the purposes of the business.

One of the cases decided related to the reclaimability of barristers clothing. The judge coined the above phrase, and any expense has to pass that test to be allowable. The only clothing I have seen allowable is protective clothing for someone in volved in construction or other outdoor occupation, and wardrobe, where the person is involved in the production of television programs.

In conclusion your friend is taking a chance that his expenses will be allowed, but I doubt very much if he would get past a Revenue audit.