allowable expenses

Are You Claiming on All of Your Expenses?

Working as a sole trader sure gives you a lot to think about and focus on. It can get confusing very easily when it comes to the financial side of your business and sometimes you need a little navigation through it all. Many sole traders miss out on the most common allowable expenses that they can claim back on, and many times it falls into not keeping receipts and records of all of your expenses.

What are Allowable Expenses?

Allowable expenses are the items that you have spent money on for the benefit of your business that you can claim tax relief on and offset against any profit that you make in your business.

Usually referred to as tax-deductible items because they are deducted from your income before calculating your tax payments. There are some things you can claim on, and others you cannot. As a business owner, it is recommended you record all of your expenses whether you think of claiming back tax relief on them or not, as they ultimately are a cost on your business.

Typically your claimable costs fall into office and premises costs, travel, staff, stock, and professional fees including marketing, advertising and training.

Breaking Down the Records

This will involve compiling a lot of receipts and it is always helpful to stay on top of them by recording them with either a logbook or software where receipts can be photographed and uploaded.

In the realm of office and premises costs, there are plenty of areas that are classed as tax-deductible expenses. General costs are associated with stationery, postage costs, printing, purchases of software and licences and the bills associated with the phone, mobile and internet. The running costs include rent for business premises, business rates, water rates, gas and electricity bills – as well as property insurance and security costs.

If you work from home, you can calculate exact costs relating to the space (where you can only claim a percentage of bills based on how long and how you use the space for work) or you can claim simplified costs (which are a set rate HMRC come up with every year based on how many hours you work each week).

Extra Expenses

Travel becomes a big area when running as a sole trader, especially if your vehicle is used for business purposes. This means that your fuel expenses, insurance and parking fees fall into deductible expenses. If you use a train, taxi or even have to book a hotel on a business trip, that also falls into deductible expenses.

There are many different types of expenditure that require recording around these areas and others, and keeping on top of them is a somewhat complex part of running the business. This is why sole traders call on the expertise of bookkeeping services to help them accurately identify and file all business expenses, as well as balance their books for their business to grow.

Contact the team at pebbles for bookkeeping services in Manchester to always be in control of your allowable expenses.

Don't just take our word for it...

Steve Tanswell, Manchester Facades

I changed book-keepers around a year ago because of a disagreement.  I employed Diane of Pebbles and having been with the same firm for 10 years, I was amazed by how easy working with Diane was.  Not only did the change save me money but also saved me time.  Utilising new technologies (to me) have massively improved the amount of money I can claim back in VAT and has made the whole process speedier and well as easier.  Even when Diane is chasing me for information she does in a friendly professional manner.  I’m thrilled to be working with her and would recommend her to anyone.

Sam Phillips, Sam Phillips Builders

“Sean and the team at Pebbles provide bookkeeping services and do everything from processing invoices to payroll and then final accounts to trial balance.  They have put processes and systems in place that have helped the company track our projects and see if they are profitable and to help us generate better profitability and cash flow.  I highly recommend Pebbles Bookkeeping and often pass their details onto my contacts.”

Mark Gray, Taylor Made Finance Ltd

“Pebbles Bookkeeping have been doing our bookkeeping for the past 2 years. Our Accountant recommended them to us and they are very professional, approachable and knowledgeble in the work they do. We send them our paperwork electronically and manually and they process it all efficiently in a timely manner.

I would not hesitate to recommend Sean and the team at Pebbles Bookkeeping – they do a fantastic job.”
Anne-Marie Armstrong, Amberry Marketing

I just wanted to thank you both for the help you’ve given me thus far in setting up my new cloud-based bookkeeping system ‘Clearbooks’.

Having used Microsoft Excel for more years than I care to admit, I had more than a few reservations when considering changing the way I managed my books, yet understood that I had to make the change sooner or later.

After an intense training session with Sean, (where I probably asked 101 questions), my fears quickly dissipated and I can honestly say that although it’s likely to take me a little while to really get to grips with the new interface, I’ve no doubt that this simple system will save me so much time and hassle in future.

And less time spent doing my books, almost certainly means more time with the family and an end to rushing around like a mad woman at quarter-end!

Thanks again and I’m looking forward to working with you again soon.

Nick Aldrich, Only The Brave

Only The Brave have used Pebbles Bookkeeping for a few years now and we treat them instinctively like an integral department of our business.

I have worked with Sean for over two decades in my previous businesses and when Sean and Diane went on their own it was a no brainer to get them involved with our day to day accounting.

Pebbles manage our bookkeeping, expenses, credit control and PAYE and have a keen eye for detail and help us spot important financial matters before they become issues.

Their integrity and honesty are unquestionable and as a result, Pebbles are an asset to our business and will continue to work with us for many years to come.