Medical Expenses incurred by sole trader as a result of accident at work?

Discussion in 'Askaboutbusiness' started by jokerini, Sep 13, 2017.

  1. jokerini

    jokerini Frequent Poster

    A sole trader, working as a handyman, incurs medical expenses (back pain) as a result of his job.

    Can he use such expenses to reduce his taxable profit like any other expense and therefore obtain relief at the top rate of tax?

    Or must he claim separately for medical expenses and only obtain 20% tax relief?
  2. Purple

    Purple Frequent Poster

    I don't know the answer but I'd say you'd have to at least registered the accident with the HSA (can be done via their website) and informed your insurance company.
  3. torblednam

    torblednam Frequent Poster

    For a tax deduction to apply, an expense must be laid out wholly and exclusively for the purpose of the trade. There is a clear duality of purpose to medical expenses, with the main object being to restore the person to full health and the restoring of their capacity to carry on their trade being ancillary to that.

    So the short answer is no, it's not a trading expense.