Business expenses get confusing and messy if you aren’t sure what to claim. Before you begin your taxes, make sure you know what you can and can’t claim. Keep an organised list of expenses using a business expenses software. This list of 9 points should help you get a better idea of where to start with your expenses and taxes this year. But when in doubt, use your accountant.
- Tax Relief- If you are self-employed, you can get tax relief for the business expenses you pay that are completely for your business.
- Travel Expenses- Travel expenses are allowed for justifiable business trips.
- Work-Related Training and Fees- Keeping your staff up to date with the newest training is fundamental for any business. Payments for work-related training are claimable as are licence fees and professional subscription assuming the organisation is approved by HMRC.
- Working from Home- If you happen to work from home, full-time, you can claim rent, mortgage and bills by charging some of the costs through your business.
- Health and Wellbeing Facilities- Small businesses are encouraged to help maintain the health and wellbeing of their staff so gym facilities are tax-free for employees.
- Forming a Limited Company- If you are forming a limited company, then you can even claim the cost of formation as a business expense.
- Freelancers and Self-Employed- Start your deductions with gas, electricity, water and council tax. Again, if you are working from home, you can claim the interest portion of your mortgage repayments, which can be claimed on a pro-rata basis. You can claim broadband and phone costs in relation to your business. A business computer can be claimed along with clothing and entertainment if they are specific to the business.
- Paying Family Members- It’s often overlooked when working with family. But if the employee is working with recognition, it’s allowed.
- Driving Expenses- If claiming for your car, you can claim mileage completed on behalf of work. If you don’t work from home, you are not allowed to claim for the miles done to and from your home and place of work.
Before diving into your yearly taxes, it’s vital that you understand what you can and can’t claim. Knowing these deductions could save you a lot money and you could avoid complications in the future.