Self-Employed Expenses: What Makes the Tax Return?

self employed expenses

Are you in your first year of business or fretting over doing your tax returns towards the end of the tax year? One of the biggest worries comes with what expenses you can claim. The main ones are those materials you have purchased to make products from your business, but here is a short guide on what self employed expenses classify as business expenses.

Working From Home

It is no longer a limited number of workers that build their empires from their homes. Since 2020, we all love the comfort of working from our own homes – but what classes as expenses within it?

To work efficiently you will need light, heating and electricity and they form a part of your expenses. These can calculate using a percentage of the overall costs linked to the floor space you use in the house or by using a daily flat rate amount set by HMRC. If you use the internet at home, and your mobile phone for business use, a percentage of these costs can be claimed as expenses also.

You can also class all advertising, marketing, stationary and computer hardware and software as allowable expenses – including required software that makes your job easier and any repairs to hardware.

Outside Expenses

If you have a car used for business, you can either claim a mileage rate of 0.45 per mile or a percentage of overall running costs.

Business use is visiting clients, purchasing stock and supplies, attending courses or business events linked to growing your business and any associated parking costs or tolls. Unfortunately, any fines you incur on the roads will not be an expense.

Additional Expenses

Other expenses that can be for business include providers for certain skills linked to your business. When you work with bookkeeping services, accountants and training providers, these are business expenses.

If your work requires uniforms or safety equipment, these can be claimed as expenses also – although you certainly would be pushing it for a nice, snappy suit just to attend business functions with. Banking fees, PayPal charges and interest on loans associated with your business are also claimable.

If you are working away or need to travel to another country purely for business, these travel expenses and business dinner costs can fall in also. There are other examples, so it may be worth talking with bookkeeping services in Manchester for a full outlook and understanding.

Contact the friendly team at Pebbles Bookkeeping today and don’t stress over your self employed expenses.

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