What Is Sundry Expenses

In business accounting, the term sundry expenses refers to small, irregular or infrequent costs that do not fit into standard expense categories. While individually minor, these costs can still add up over time and need to be recorded accurately for accounting and tax purposes.

Sundry expenses are common in small businesses and sole trader accounts. They usually cover occasional purchases or payments that are genuine business costs but are too varied or insignificant to justify a dedicated category. This article explains what qualifies as a sundry expense, how to treat these items in your bookkeeping, and how to stay compliant with HMRC requirements.

The Definition of Sundry Expenses

The word ‘sundry’ simply means miscellaneous or various. In financial terms, sundry expenses are business-related costs that:

• Do not occur regularly

• Are too minor or infrequent to be given their own account heading

• Are still wholly and exclusively for business purposes

These costs are grouped under one heading in your accounts to avoid cluttering your records with dozens of categories for one-off or unusual items.

Sundry expenses are different from regular overheads such as rent, insurance, stationery or marketing, which should be recorded under their specific expense codes.

Common Examples of Sundry Expenses

Some examples of costs that might be classified as sundry expenses include:

• A one-off postal fee for returning defective goods

• An occasional repair to a minor office item

• A small thank-you card for a client or supplier

• A rare bank fee not part of normal charges

• Ad hoc purchases made while travelling for business, such as batteries or adapters

• Contributions to minor staff gifts (provided they fall under allowable thresholds)

• Reimbursing a small supplier refund

Each of these costs is legitimate, but they occur so infrequently that creating a new expense category would be unnecessary.

What qualifies as sundry will vary from business to business. For a large firm, a £100 one-off software purchase might be classed under IT. For a sole trader who rarely uses tech, the same item might reasonably be treated as sundry.

What Should Not Be Included

Not every irregular cost can or should be lumped into the sundry expenses category. Costs that are recurring or significant in value must be classified correctly. You should not use sundry expenses as a catch-all for poorly categorised spending.

Avoid including:

• Wages and staff salaries

• Rent and utility bills

• Marketing and advertising

• Office supplies purchased regularly

• Software subscriptions

• Business meals or entertaining

• Travel and mileage expenses

If a particular type of expense happens more than once or represents a noticeable portion of your total spend, it should be given its own code or included in a broader category.

Deliberately disguising larger or unusual payments as sundry can lead to questions from HMRC, particularly during a tax enquiry or audit.

How to Record Sundry Expenses

Most accounting software includes a default sundry or miscellaneous expense code. When you record a payment that does not clearly fit elsewhere, you can use this category.

You should still:

• Keep a record of each transaction

• Retain receipts or proof of payment

• Make a short note explaining what the item was and why it was necessary

For example:
Date: 15 May
Amount: £8.50
Description: Padlock and keys for temporary display stand at pop-up stall

The more detail you include in your records, the easier it is to justify the cost as business-related and to defend the claim if HMRC ever reviews your accounts.

Are Sundry Expenses Tax Deductible?

Yes, sundry expenses can be tax deductible as long as they meet the usual rules. To qualify, they must be:

• Incurred wholly and exclusively for the purpose of your trade

• Not capital in nature (i.e. not buying equipment or assets to be used long term)

• Reasonable and clearly business-related

Provided you can demonstrate that the item is not for personal use and that it was necessary to carry out or support your work, the cost can usually be included in your tax return as part of your allowable business expenses.

If you are VAT registered, you may also be able to reclaim VAT on qualifying sundry expenses, but only if you have a valid VAT invoice.

Sole Traders and Limited Companies: Is There a Difference?

Sundry expenses are used in both sole trader and company accounts. The rules for claiming them are broadly the same, but directors of limited companies must be careful to separate business expenses from personal spending.

For example, a company director who buys a small item of clothing or a meal on the road cannot classify it as a sundry expense unless it clearly meets the requirements for allowable business costs.

Directors and employees must also follow HMRC guidance on reimbursable expenses and benefits in kind.

Sole traders, on the other hand, claim sundry expenses directly on their Self Assessment tax return as part of their overall business costs.

When to Create a New Expense Category

If a particular type of cost appears more than a few times a year, or totals more than a few hundred pounds annually, it may be time to create a new category. This improves visibility over your spending and helps with budgeting, forecasting and financial planning.

For example, if you regularly attend local events and often buy small one-off display items, you might introduce an ‘Exhibition Materials’ expense code rather than using sundry each time.

Well-organised accounts are easier to analyse and are more likely to withstand scrutiny from HMRC.

Summary: What Is Sundry Expenses?

Sundry expenses are small, infrequent business costs that do not fall neatly into any other expense category. They are genuine costs of doing business but are not large or regular enough to justify a dedicated accounting heading.

Typical sundry items might include occasional postage, small tools, minor repairs, or one-off purchases made while travelling. While these costs can usually be claimed for tax purposes, they must still meet HMRC’s business use criteria.

To use the sundry category properly:

• Record costs clearly

• Keep receipts and notes

• Avoid including regular or high-value expenses

• Review your categories periodically as your business grows

Used correctly, sundry expenses make your bookkeeping tidier without compromising accuracy. But if overused or misapplied, they can trigger unnecessary questions and make tax time more stressful. When in doubt, speak to your accountant about how best to structure your expense categories.