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Posted Sat, 23 Dec 2023 17:36:34 GMT by Frank Biganski
I'm a cash basis sole trader. I have a business credit card that I make purchases with for items such as camera equipment and online advertising. I do not pay off the balance in full each month, so I have a running balance with interest I pay on. The amounts I pay each month may be £100 one month or perhaps £300 in another month. Would I be correct to assume that I'm allowed to deduct these monthly payments and interest payments? Thank you and Happy Holidays. Frank
Posted Mon, 08 Jan 2024 09:22:02 GMT by HMRC Admin 19
Hi,

You can claim business costs for bank, overdraft and credit card charges of up to £500 when using the cash basis.

You cannot claim for repayments of loans, overdrafts or finance arrangements. You can see guidance here:

Expenses if you're self-employed

Thank you.

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