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Bank Charges or Credit Card interest

You can claim for any bank charges where the business incurs them.

These could include:

  • Bank charges (e.g. bounced direct debits)
  • Slimming World Bank Charges (e.g. bounced direct debits)
  • Charges for using Credit Card instead of Debit Card (e.g. some providers charge a % for using a credit card)*
  • Overdraft and credit card charges / annual fees*
  • Interest on bank loans, overdrafts, credit cards*
  • Hire purchase interest (lease cars or vans for business purposes)
  • Charges by Credit Card processors (e.g. iZettle) for running your business (See the EFT Article for more information)

Limits may be imposed on these charges – you can find out more in document HS222 available from HMRC.

 

Important – Business Accounts

It is very important to be able to distinguish the different between a Personal Transaction and a Business Transaction. Having all income/outgoings for your business and your personal life can cause confusion, and makes your tax responsibilities even more important.

It is highlight recommended to setup a separate Business Bank Account for the purpose of running your business. This will allow you to understand if your business is making a profit, and see which charges and incomes are related to your incoming business.

Business Bank Accounts however may come with charges. However as a sole trader, you may not need a ‘business’ account, and may be able to use a personal one. Charges do vary, and support may vary also (some Business Accounts come with added features, support, premium contact options, etc) so it is best to shop around.

At Malgra, we use Starling Business Banking which provides no fees, and can be administered online and through Post Office.

Updated on January 4, 2019

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