What are tax allowances and why do they matter?

Tax allowances in Afirmo record the supported business-use portion of mixed or recurring costs, such as home-office, phone, internet or vehicle expenses. They help the tax estimate reflect information that may not be visible from bank transactions alone.

Do not use a default percentage without evidence. The correct amount depends on actual use, records, entity type and the method permitted by Inland Revenue. Review the allowances when circumstances change and before the return is filed.