Self-employed Income Tax Relief- Are You Claiming All You Could?
As much as we would all rather not pay taxes, it is compulsory. But, if you are self-employed, have you checked if you can deduct any more of your expenses against your tax-deductible profit?
The gov.uk website has an abundance of help with what you may or may not claim for income tax relief, but for now, here is a short guide to help you check if it is all in order.
Here are a few things you could use to your advantage if you are not already aware.
Office costs
This includes stationery, printing (and ink), postage and computer software. Within this bracket also falls rent for your business property, utility bills, insurance, and the part of your home that you may use as an office.
Travel costs
If you use a car, you can claim with insurance, road tax, repairs and servicing, fuel, parking costs, licence fees, breakdown cover and even public transport fares. Hotel rooms and meals on business trips are also allowable.
Clothing expenses
Uniforms and necessary protective clothing have to come out of your own pocket when you are self-employed. But did you know that you can claim allowable business expenses for them ,too? (But not the normal, everyday clothing that you wear to work, so bear that in mind.)
Staff costs
Allowable business staff salaries, bonuses, pensions, and benefits. Agency fees and subcontractors are in this bracket too. You can claim any training courses related to your business against the tax-deductible profit too.
Items you buy to sell on
This includes stock, raw materials, and direct costs from producing goods. It does not cover goods for private use or ageing of equipment.
Financial costs
Hiring an accountant, a solicitor, surveyor, or architect will be included in this category. Also included are bank, overdraft and credit card charges, interest on business loans, HP interest and Islamic finance. Public liability insurance is yet another.
Advertising or marketing
Any advertising in newspaper or directories, bulk mail advertising, free samples and website costs are deductible. Any trade/professional subscriptions or memberships are included here too.
Training courses
To claim, they must be related to your business. This does not include starting a new business nor expanding into new areas of business. There are stipulations to a few of these, so be sure to head over to https://www.gov.uk/expenses-if-youre-self-employed to ensure that you have the correct information about income tax relief. For example, if you run your own limited company, the rules that apply will be different.
