Joe Brough provides a reminder of how and when a private use element should be calculated for the self-employed and property landlords.
Following the launch of HMRC’s digital campaign, now is a good time for unincorporated businesses and landlords to review how they apportion their expenditure to account for any private use.
Background
Expenditure can only be deducted from trading and rental profits if it has been incurred ‘wholly and exclusively’ for the purposes of the business (ITTOIA 2005, s 34). When applying this rule, expenditure which has been incurred for a non-trade purpose, or has a duality of purpose, or is disallowable by statute must be added back in the business tax computations.
Following a trial scheme in 2024, which yielded some £27m in
