Expenses You Might Have Missed From Your Self-Employed Self-Assessment
If you are self-employed, you can claim back expenses against your income to reduce your overall business profit and the amount of tax you pay.
For example, if you earn £40,000 through self-employment and claim back £5,000 in allowable expenses, your profit will be £35,000, so you will only pay tax on this.
Many of these allowable expenses are obvious. And if you have been self-employed for a few years you will know most of them. But there are certain less obvious expenses that you might not have claimed for.
Here is our guide to some of the expense claims that you might have missed from your Self-Assessment this year that could save you hundreds of pounds.
You can claim for phone, mobile and internet bills as well as postage, stationary, printing and some software costs. You can only claim for software if the business uses it for less than two years, or if you make regular payments to renew the software licence.
Home as office costs
If you work from home, you can claim a proportion of the costs for utilities, council tax, mortgage interest or rent. You need to find a reasonable way of dividing these costs. For example, by looking at the number of rooms you use for your business and the amount of time you spend working at home.
So if your house has four rooms and you use one of them for an office, you can divide a utility bill by four. And if you work from home five days a week, you can divide this one room bill by seven and multiply it by five.
If you have an insurance policy like professional indemnity insurance or public liability insurance, then you can claim this as an allowable expense.
You probably already know that you can claim for things like mileage and other travel expenses like rail and bus fares. But you should also be aware that you can claim for connected expenses like car insurance, parking fees and car hire charges. If you are staying somewhere for work, then you can also claim for hotel bills and meals on overnight trips.
You can claim for some subscriptions as long as they are relevant to your work. For example, you can claim for subscriptions to trade or professional journals and membership of a trade body or professional organisation related to your business.
Want more advice on claiming expenses? Speak to a member of the Cloudaccountant.co.uk team today. Call: 0808 281 0303 or visit www.cloudaccountant.co.uk