self employed expenses

Self-Employed Expenses: What Makes the Tax Return?

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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Sam Phillips, Sam Phillips Builders

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Steve Price, BWP Inspire

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A massive thank you to Diane at Pebbles Bookkeeping & HR. You took the huge stress away from where do I start, with employee policies etc. You have created us a great, informative employee handbook, covering all necessary policies and risk assessments in a matter of no time and from the other side of the world too. I will definitely be in touch for any future help our company needs.

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“We began to relinquish our bookkeeping tasks to Pebbles Bookkeeping in September 2020, following our meeting with Diane Huxley to discuss our requirements. We signed up with Diane immediately. We have all built a quick rapport with Diane and it’s good to know that we have her support and expertise at the other end of the phone.

Pebbles Bookkeeping is a perfect fit for our company and liaises seamlessly with our accountant. It is our pleasure to work alongside them.”

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.

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