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.Â
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.Â
OFFICE, PROPERTY & EQUIPMENTS -Â
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.Â
STATIONERY -Â Phone, mobile, fax and internet bills, postage, stationery, printing, printer ink and cartridges, computer software.
RENTS, RATES, POWER AND INSURANCE -Â Rent for business premises, business and water rates, utility bills, property insurance, security, and using your home as an office.Â
CAR, VAN, AND TRAVEL EXPENSES -Â
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 -Â
You can claim allowable business expenses for -
Uniforms
Protective clothing needed for your work
Costumes for actors or entertainers
STAFF EXPENSES -Â
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 -Â
Accountancy, legal and other professional fees can count as allowable business expenses. You can claim costs for -Â
Hiring of accountants, solicitors, surveyors, and architects for business reasons.Â
Professional indemnity insurance premiums.Â
BANK, CREDIT CARD AND OTHER FINANCIAL CHARGES -Â
You can claim business costs for -Â
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 -Â
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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