If you're self-employed, your business will have various running costs. There are certain expenses you can claim, that will lower your tax bill. HMRC will allow you to deduct the costs of certain purchases, that are necessary to run your business. These are referred to as 'allowable expenses'.
There are many different costs that you can claim for, some of which you may not have considered. Here's 10 costs you can claim as allowable expenses if you're self-employed.
Stationery
You can claim expenses for things like:
Postage
Printer ink and cartridges
General stationery
Rents, rates and business
You can claim expenses for:
Rent (for business purposes)
Business and water rates
Utility bills
Property insurance
Mobile phone and internet bills (for business)
Security
Using your home as an office (only the part that's used for business)
Other types of insurance
Vehicle and travel
Some things you can claim for include:
Vehicle insurance
Fuel
Repairs and servicing
Parking
Hire charges
Breakdown cover
Train, bus, air and taxi fares
Hotel rooms
Meals on overnight business trips
You can't claim for:
Non-business driving / travel costs
Fines
Travel costs between home and work
Clothing
You can actually claim allowable expenses for:
Uniforms
Protective clothing needed for work
Costumes for actors / entertainers
Staff / employees
You can claim expenses for:
Employee / staff salaries
Bonuses
Pensions
Benefits
Agency fees
Subcontractors
Employer's National Insurance
Training courses (must be related to business)
Reselling goods
You can claim for:
Goods for resale (stock)
Raw materials
Direct costs from producing goods
Legal and financial
You can claim for the costs of:
Hiring accountants, solicitors, surveyors and architects for business reasons
Professional indemnity insurance premiums
Banking and credit cards
You can claim business costs for:
Bank charges
Credit card charges
Overdraft charges
Interest on bank / business loans
Hire purchase interest
Leasing payments
Marketing and entertainment
Things you can claim for include:
Advertising in newspapers / directories
Bulk mail advertising (mailshots)
Free samples
Website costs
Training courses
You can claim allowable business expenses for training that helps you improve your skills and knowledge used in the workplace. Any training courses must be related to your business.
Knowing what you're allowed to claim as a sole trader can be complicated - especially as work can vary significantly from person to person.
To find out more about allowable expenses you can claim visit:
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