Tax
Bulletin
February
2003
As part of Deloitte & Touche's policy for regular communication
with clients, we would like to inform you of some important
changes to the Income Tax Law which came into effect on
1 January 2003.
PRIVATE
MOTOR VEHICLE EXPENSES (SALOON)
Private
motor vehicle expenses of any kind, (e.g. petrol expenses,
repairs and maintenance expenses, road taxes and motor vehicle
insurances) are not deductible from taxable income, irrespective
of whether the motor vehicles are used in the business or
are owned by the business.
ENTERTAINMENT
EXPENSES
Client
entertaining expenses, including hospitality expenses, of
any kind which are incurred for the purpose of the business
are not deductible from taxable income, except where the
aggregate amount of business entertainment expenses incurred
in a tax year does not exceed 1% of the gross income of
the business or £10.000, whichever is the lower.
Therefore,
as a result of the above, we would like to advise all our
clients, to account for private motor vehicle and entertainment
expenses separately in their books and records with effect
from 1 January 2003.
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