Public liability insurance for your business is tax deductible. Business insurance counts as an ‘allowable expense’, so it’s one of the costs you can deduct when you’re calculating your taxable profit.
When you’re calculating your taxable profits for your tax return you can subtract business expenses from your income, including certain running costs, interest on bank loans, and the cost of professional services like accountants and solicitors.
Public liability insurance is a business cost, so it’s included in HMRC’s definition of allowable expenses and it is tax deductible.
You should keep a record of all your business income and expenses so that you can accurately calculate your taxable profits and also so that you have evidence of your calculations if HMRC conducts a check on your business. When you buy your business insurance, be sure to keep your receipt and your policy documents safe.
If you hire an accountant to complete your tax return, remember to tell them how much you paid for your public liability insurance so that they can include this cost as an allowable expense when they’re making their calculation.
We recommend that you take professional advice when you are making any important tax-related decisions.
At Simply Business we insure all kinds of trades like:
Is your profession not listed? When you run a quote you can select your trade from over 1,000 options.
6th Floor99 Gresham StreetLondonEC2V 7NG
Sol House29 St Katherine's StreetNorthamptonNN1 2QZ
© Copyright 2021 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.