Self-Employed: Expenses 101

Being self-employed has its perks. Setting your own hours, being your own boss and… navigating the complexities of tax returns!

With tax return season upon us, fear not! One way to ease your tax burden is maximizing your allowable expenses.

Travel and Transport:

• Racking up the miles for client meetings or deliveries? Claim your fuel costs, parking fees, and even train or bus fares. Remember, to record the business use percentage of your vehicle if travelling by your own personal car
• You can also use HMRC’s approved mileage rates for a simpler approach.
• Overnight trips for conferences or client visits? Claim accommodation, meals (£25 per night) and travel costs. Make sure to keep the receipts!

Working from Home:

• Have a designated home office or a room that’s used for your work? Claim a portion of your rent, council tax, electricity, and internet bills based on the space’s usage. We have a calculator that our clients just love!
• Desk chair giving you backache? Replace it! Same goes for essential equipment like computers, printers and other furnishings!

Office Essentials:

• From pens to paperclips, ink cartridges to envelopes, claim that office stationery that keep your business running.
• Stay connected with clients and colleagues! Claim your bills for essential communication tools such as telephone and internet costs! Don’t forget the personal use deduction!
• Software for project management, accounting, or marketing? Claim those subscriptions that fuel your business growth.

Beyond the Basics:

• Promote your business and attract clients! Claim website costs, social media advertising, and even printed flyers.
• Need legal advice or accounting help? Claim those professional fees that keep your business on track.

Remember:

• Hold onto your receipts, invoices, bank statements! HMRC might ask for proof
• For complex situations or if you’re unsure about something, consult a qualified accountant. They can help you navigate the tax landscape and maximize your claims.

Bonus Tip:

• HMRC offers simplified expense methods for certain categories like travel and working from home. Check their website for details and see if they can save you time and paperwork.

Take Home:

By claiming your allowable expenses, you can significantly reduce your taxable income and ultimately, your tax bill. So, grab your receipts, dust off your calculator, and get ready to claim your way to a lighter tax burden!

While knowing what expenses to claim can seem daunting, as accountants based in Fareham, we at Vibe Accounting are here to give you all the advice you need.

Make sure you’re not paying more tax than you need to!