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This month, our long-standing branch member, Phil Cockayne of Marshes LLP will be back with one of his practical sessions on Allowable and Disallowable Expenses.
It’s easy to fall into the habit of treating everyday expenses the same way each time they are incurred. But tax treatment can depend on the purpose and circumstances of the expenditure or whether an expense is incurred by a sole trader or company, not just by what is being bought. Then, where VAT is involved, we must think about whether the same rules determine whether VAT can be reclaimed.
Phil will take us through these considerations, focusing on some of the everyday areas where bookkeepers need to pause and look beyond the transaction itself before deciding on the correct tax treatment.
Phil won't just provide a list of what is and isn't allowable. He’ll go further and will explain how the treatment can differ, highlight common traps and point us towards reliable guidance when we're unsure.
Importantly, as bookkeeping software becomes increasingly able to categorise transactions quickly with the use of AI, this session will be a perfect reminder of where the bookkeeper still adds value. Software may identify what an expense appears to relate to, but deciding how it should be treated in particular circumstances can require rather more judgement.
This month’s meeting is planned to be a useful refresher and a chance to test just how straightforward some of those everyday expenses really are.
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