Monday 10th June 2024
EXPENSES OVERVIEW -
If you're self-employed, your business will have various running costs. You can deduct some of these costs to work out your taxable profit as long as they are allowable expenses.
For example - if your turnover is £40,000, and you claim £10,000 in allowable expenses, you will only pay tax on the remaining £30,000 - known as your taxable profit.
OFFICE, PROPERTY & EQUIPMENTS -
You can claim items that you would normally use for less than 2 years as allowable expenses for example, stationery & rents, rates, power, and insurance costs. For equipment you keep to use in your business, for example, computers or printers, claim: Allowable expenses if you use cash basic accounting, and capital allowance if you use traditional accounting.
STATIONERY - Phone, mobile, fax and internet bills, postage, stationery, printing, printer ink and cartridges, computer software.
RENTS, RATES, POWER AND INSURANCE - Rent for business premises, business and water rates, utility bills, property insurance, security, and using your home as an office.
CAR, VAN, AND TRAVEL EXPENSES -
You can claim allowable business expenses for:
Vehicle insurance
Repairs and servicing
Fuel
Parking
Hire charges
Vehicle license fees
Breakdown cover
Train, bus, air and taxi fares
Hotel rooms
Meals on overnight business trips
CLOTHING EXPENSES -
You can claim allowable business expenses for -
Uniforms
Protective clothing needed for your work
Costumes for actors or entertainers
STAFF EXPENSES -
You can claim allowable business expenses for -
Employee and staff salaries
Bonuses
Pensions
Benefits
Agency fees
Subcontractors
Employers Nation Insurance
Training courses related to your business
LEGAL AND FINANCIAL COSTS -
Accountancy, legal and other professional fees can count as allowable business expenses. You can claim costs for -
Hiring of accountants, solicitors, surveyors, and architects for business reasons.
Professional indemnity insurance premiums.
BANK, CREDIT CARD AND OTHER FINANCIAL CHARGES -
You can claim business costs for -
Bank, overdraft, and credit card charges
Interest on bank and business loans
Hire purchase interest
Leasing payments
Alternative finance payments, for example, Islamic finance
MARKETING, ENTERTAINMENT, AND SUBSCRIPTIONS -
You can claim allowable business expenses for:
Advertising in newspapers or directories
Bulk mail advertising
Free samples
Website costs
Trade and professional journals
Trade body or professional organisation membership if related to your business
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