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What Expenses Can I Claim?

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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