Which business expenses are not tax-deductible?

Some business expenses are not eligible for tax relief from HMRC. A common example of a non-tax-deductible expense is client entertainment. Because you cannot claim these costs against your tax bill, sorting them correctly ensures your tax estimates stay completely accurate. 💸

How to spot non-tax-deductible expenses in the app

The app automatically flags expenses that do not qualify for tax relief. You can easily spot them in two places:

• In the category picker: Whenever you are sorting a transaction, tap the info icon (ℹ️) next to any category. This will show you exactly what it is for and whether it is eligible for tax relief.

• In your Profit & Loss report: Head to your financial reports to see your calculations. Any non-tax-deductible items are broken down and displayed clearly within the total expenses section. 📊

Looking for the full HMRC guidelines?

If you want to view the complete, official lists of what your business can and cannot claim, you can read the government guides directly:

• HMRC business expenses guide for sole traders and the self-employed 👤

• HMRC expenses guide for limited companies 🏢