Most allowable expenses relate to specific categories, but those smaller, more random, expenses need to be recorded too – and sundry expenses can soon add up, so it’s essential to keep on top of them.
We’ll go over what qualifies as a sundry expense, and how to record them correctly in your bookkeeping.
What are sundry expenses?
Sundry expenses are small one-off costs. Sometimes referred to as ‘miscellaneous expenses’ they tend to be low in value, and fairly random. Their ad hoc nature means they don’t usually fit your other expense categories, so grouping them together as sundry expenses makes it easier to stay organised rather than having lots of categories with one transaction each.
They can vary from one business to the next, but examples might include one-off Christmas decorations for the office, donations, or sponsorship costs.
Is it worth recording my sundry expenses?
Absolutely, yes! Businesses can reduce their tax bill by claiming tax relief on their allowable expenses, so recording sundry expenses correctly in your bookkeeping means you can include them in your claim too.
Although sundry expenses are small, infrequent, and impromptu by nature, that doesn’t mean you should leave them out. Recording every expense, large or small, is essential to ensure you pay the right amount of tax and claim everything you’re entitled to.
You might feel one single sundry expense by itself isn’t worth bothering with, but these can add up to something significant over the course of a year.
What’s the difference between sundry expenses and general expenses?
Working out whether something counts as a sundry or general expense can sometimes be quite confusing because categorising your expenses isn’t always straightforward. Our table shows a few examples.
| Sundry Expenses | General Expenses |
| They don’t seem to fit into existing expense categories. | Usually easier to categorise correctly. |
| One-off or sporadic. | More predictable and occurring frequently or consistently. |
| For instance, donations to charity or local groups. | Examples might include promotional costs, salaries, or travel. |
Deciding which expense category to use
It can help to think about how an expense fits into your overall strategy, because this can help you work out which category it belongs in. For instance, that lobster costume might seem like a random sundry expense, unless of course you needed it for your marketing activities.
What if I claim the same sundry expense on a regular basis?
Sundry expenses are supposed to cover those minor and unpredictable purchases. If a sundry expense becomes more regular then you’ll need to create a new category for it in your bookkeeping. This will help you keep track of business spending more efficiently too, so it’s important for lots of reasons.
Your accountant or bookkeeper will help if you’re not sure. Just make sure you don’t miss out!
How do I claim sundry expenses?
Businesses claim tax relief on their expenses – including sundry expenses – by including them in their tax return. The type of tax return you need to submit depends on the structure of your business. For example:
- A limited company must submit a Company Tax Return and pay Corporation Tax
- Sole traders will submit either a Self Assessment or MTD Income Tax return to tell HMRC about their profits and losses
Can I have sundry income as well as sundry expenditure?
You can indeed. Just like you might sometimes incur random spending, you might also receive income which doesn’t really seem to fit anywhere else into your accounts. For example:
- A client is extremely late paying their bill so you charge them a late payment fee
- You receive a one-off grant from the local council
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