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Raw Materials

Allowable Expense?

Risk level?

Allowable 🟢
Low risk 😃

Summary

Costs incurred to purchase raw materials (sometimes referred to as direct materials) used in making your products can be expensed.

Detail

You can expense everything you spend on raw materials used to make your product. Some examples could include:

Specific considerations

We use the cash basis for accounting so don't worry about the value of any stock that you hold onto for later, simply include the cost of purchase as an expense on the date you purchase any materials.

These expenses might be relevant too

Website
The various costs that are incurred when you set up and run a website for your business can be claimed as expenses (e.g., hosting costs and domain name costs).
Read more
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Utilities
If you have separate business premises, you can claim the full cost of utilities for that space. If you work from home, you may expense a portion of your bills.
Read more
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Allowable?
Risk level?
Possibly 🟡
Low risk 😃
Travel
Expenses you incur when you travel for business can normally be expensed if you're a sole trader. This does not include costs of travel between home and work.
Read more
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
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