I know that a self-employed person can claim bank charges, but can they claim charges for bounced cheques AND Direct Debits, I have a client where it has been charges amounting to £30 per time and therefore through out the year has amounted to over £700. Is this allowed to be claimed against income on the tax return?.
Hi Lor, by any chance do you ask because the bank account is a private one, used for the trade? If so, then a reasonable proportion of the fees and charges should be added back in the disallowable column. This could be based on whether each charge was for a private or business transaction.
If the transactions in the bank account are solely business are solely business ones then the charges are all claimable against profits. In this circumstance the only reason I can think of for the Revenue to disallow would be if they determined that he was no longer trading to make a profit.
General bank charges can be apportioned according to the number of private to business transactions in the period
thank you Tim, it is a business account, I was just querying it as it is quite a sum over all @ £700.00 per year and also at £30 per charge for bounced Cheques and direct debits etc.
It is a business account so from what I gather then 100% business related.
