You are here: Home - Household Bills - News -

The ludicrous tax return expense claims that won’t make the cut

0
Written by: Paloma Kubiak
24/01/2017
There’s just one week left to submit your tax return and if you’re not sure whether to put an expense claim through, here’s a list of the most ludicrous that were rejected by HMRC.

The deadline to submit your 2015/16 tax return and to pay any tax owed is Tuesday 31 January.

If you’ve yet to submit yours and you’re not sure whether an expense is allowable, HM Revenue & Customs (HMRC) has today published a top 10 list of the most outlandish items which people attempted to put through on their 2014/15 returns.

The tax authority hopes those submitting this time round won’t make the same or similar claims as the following expenses were all rejected:

  1. Holiday flights to the Caribbean
  2. Luxury watches as Christmas gifts for staff – from a company with no employees
  3. International flights for dental treatment ahead of business meetings
  4. Pet food for a Shih Tzu ‘guard dog’
  5. Armani jeans as protective clothing for painter and decorator
  6. Cost of regular Friday night ‘bonding sessions’ – running into thousands of pounds
  7. Underwear – for personal use
  8. A garden shed for private use – plus the costs of the space it takes up in the garden
  9. Betting slips
  10. Caravan rental for the Easter weekend.

The expenses you’re allowed to claim for

The expenses you can legitimately claim for under ‘allowable expenses’ include:

Office costs: stationery and phone bills
Travel costs: fuel, parking, train or bus fares
Clothing: such as uniforms
Financial costs: insurance or bank charges
Costs of business premises: lighting, heating, business rates
Advertising or marketing: website costs

You can also claim ‘capital allowances’ which are items you buy to use within your business such as equipment or a van.

Ruth Owen, HMRC director general of customer services, said: “Year after year we receive a number of ludicrous expense claims, ranging from international holiday flights to expensive designer clothing, which we would never uphold. Why should the honest taxpayer pick up the bill for others? HMRC will only accept those claims which are genuine, such as legitimate travel expenses or the cost of tools for the job.”

See YourMoney.com’s top tips to help you complete your tax return on time to avoid paying a penalty.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
hold cash
Cash perks to tempt current account switchers disappearing

Research reveals banks have cut back on cash perks used to attract new current account customers.

Close