ACCA Taxation F6 Practice Exam 2025 – Complete Study Resource

Non-deductible expenses for tax purposes refer to costs that cannot be subtracted from a business's income when calculating taxable profit. Personal expenses and fines for late payments fall into this category because they are not incurred as part of the normal operation of a business.

Personal expenses are costs that are for an individual's benefit rather than business-related. Since income tax is structured around taxing business profits, expenses that are clearly personal do not qualify for tax deductions. Similarly, fines for late payments are considered penalties rather than legitimate business costs. Tax authorities typically see these fines as avoidance of compliance rather than as necessary expenses for earning income, thus rendering them non-deductible.

In contrast, business travel expenses, advertising costs, and office supplies are typically necessary for the operation and revenue generation of a business, which is why they are generally deductible.