Are accountants fees a deductible expense?
This is a question which regularly pops up from new clients who are doing their own book-keeping, are your accountants fees an allowable expense? You will be glad to know that by and large, yes, your accountants fee is an allowable expense, but read on to find out when it might not be!
Why not?
There is a phrase used often by HMRC to describe expenses, and that is “wholly”, were the accountancy fees for you business only? What other reason could anyone possibly need an accountancy for?
Lets say you are employed as a plumber, and have an income from some rental property you were left by a deceased relative. Its been a very busy year at work, you have received a pay rise to £70,000 , and now need to consider the Child Benefit Clawback.
In this scenario, it should be possible to claim the accountancy fees for preparation of the accounts, however work carried out regarding the Child Benefit Clawback has nothing to do with the property rental business, and is therefore should not be an allowable expense.