Could you tell me how to treat the private use of the expenses in both sole trader and corporate questions? When shall we deduct it in expense and when shall not… Kind of get crazy about it…
Thank you so much.
Hi Rita when dealing with adjustment of profits the ONLY time we add back (disallow) expenses for private use is when it is private use by the PROPRIETOR of an UNINCORPORATED trade! There is NO add back when it is private use by an employee of a business whether unincorporated or incorporated! This same rule also applies when restricting capital allowances to the business use – we only restrict when there is private use of an asset by the proprietor of an unincorporated trade.
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