Sundry expenses when caluctaling expenses for tax

P

pandt2306

Guest
Hi,
I am a IT contractor and currently finalizing my 2006 tax for submitting on ros later today.

An accountant once told me that I can put down 'sundry expenses' when calculating my expenses she said that I put down a certain amount per month in subndry expense without have to show receipts.

Is this correct, and what is the monthly max. I can claim in sundry expenses ?

Thanks
 
ubiquitous said:
How much can you justify if you are challenged on this point by Revenue? That is the amount you put down.
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Thanks

that sounds a bit arbritary, I thought there was acertain amount you could put down without having to produce recipts if asked to by revenue
 
Its not a matter of having receipts, its a matter of whether or not you will be in a position to justify the deductions you include. You should not include anything that you might have a problem justifying if challenged later on. Of course this is arbitrary as this will depend mostly on your own circumstances and those of your business. This applies to all overheads not just those in sundry expenses. If this confuses you, then perhaps you need professional advice before finalising your return, even if this means being late.
 
pandt2306 said:
that sounds a bit arbritary, I thought there was acertain amount you could put down without having to produce recipts if asked to by revenue
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In that case everyone would just add this amount.

The "arbritary" method means that legitimate claims for a true expense amount can be made (which will be different for every business/sector/claim), with revenue given the opportunity to investigate should they have any issues with the figure claimed.
 

Thanks again, that makes sense, it's just that my accountant friend (in a informal conversation a few years back) seemed to imply that there was a limit on it,
 
pandt2306 said:
Thanks again, that makes sense, it's just that my accountant friend (in a informal conversation a few years back) seemed to imply that there was a limit on it,
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Is it possible that, with a slight knowledge of your activities etc., they gave an example amount for what would/could be justified?
 
pandt2306 said:
Thanks again, that makes sense, it's just that my accountant friend (in a informal conversation a few years back) seemed to imply that there was a limit on it,
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Well if your turnover is €100,000 and you claim €10,000 in sundry expenses (verified or not) don't be surprised if Revenue query this if they ever look closely at your accounts.
 
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