Business Credit Card Purchase Deductions

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

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.