When it comes to completing your tax return, you may be confused as to what expenses you can claim. We’ve put together a guide to help clear things up for you to help you save as much as possible:
Day-to-day expenses
If you work from home you can claim for the use of home expenses on your tax return such as electric, lighting and heating.
If you do not have a business mobile phone and your personal mobile phone is used for your business as well as personal use then you can also claim for a percentage of this. The same goes for internet/broadband usage.
Any advertising, marketing, printing, printer ink and cartridges, stationery, postage, computer software, and even items such as your office computer and desk are also allowed to be claimed for.
Insurance
You can claim for any insurance policy for your business, for example public liability insurance
Travel Expenses
If you have a car that you use for business this can also be put through the accounts. The HMRC approved mileage allowance is 45p per mile for the first 10,000 miles, and 25p per mile for any over this. You can’t claim separately for owning and running costs like fuel and MOTs, as the business mileage rate covers these expenditures.
Business use is considered to be journeys such as visiting clients, going to purchase stock, attending training courses and going to temporary places of work.
Please note:
-Driving to your office or a regular place of work is your commute and therefore personal use so it does not count as business use.
-Other business-related travel costs such as parking and toll roads can also be claimed, however parking fines and speed awareness courses can’t be claimed.
-Food can only be claimed if you are working away. Any coffees or sandwiches that you grab on the way to work aren’t allowed to be claimed for.
Other expenses
-Clothes can only be claimed for if they are a uniform or if they’re branded or are safety items such as high visibility jackets and steel toe boots, or character costumes for entertainers. Everyday clothing, even if you wear it for work, can’t be claimed
-Training courses can be put through but only if you are maintaining a current skill or they are directly related to your business
-Accountancy fees can also go through. HMRC penalties and interest can not.
If you have a business bank account, then the charges that relate to this can be claimed. The same goes for fees relating to a business credit card, PayPal and the interest on a business loan, overdrafts, but you cannot claim for repayments of loans, overdrafts or finance arrangements.
Not every business is the same and there may be more expenses that you can claim for specific to your business. If you need a hand you can always get in touch with our friendly team of experts via the contact page who are more than happy to help.
Or take a look at HMRC’s website for the full overview
https://www.gov.uk/expenses-if-youre-self-employed
https://www.gov.uk/tax-relief-for-employees