If you are a self-employed, different types of costs will be incurred when running your business. As maintaining such costs can be very difficult, it is best you learn about claiming these expenses which help you reduce the tax bill.

Here is a list of certain types of business expenses you can claim for.

Allowable expenses
There are certain types of costs which you can claim as allowable expenses. Allowable expenses must be incurred ‘wholly or exclusively’ for your business purposes only and not for personal purposes.

Such expenses include:

  • Accountancy and legal fees: Fees for accountants and solicitors
  • Advertising and marketing costs: Advertising in newspapers, directories or website
  • Travel costs: Train, bus, air, and taxi fares, accommodation and meal costs on overnight business trips
  • Office costs: Phone, internet, office equipment like printer, fax costs
  • Staff costs: Wages, NI contributions, pension, training, childcare provision (subject to conditions) costs
  • Construction payment costs: Construction subcontractor payments
  • Financial costs: Interest on bank loans, bank charges
  • Business premises costs: Rent for business, electricity, heating, internet and phone bills, use of home as your office ( a business proportion only)
  • Cost of goods: Raw materials cost, direct cost of manufacturing goods
  • Other business expenses: Subscription costs

Capital allowances
Capital allowances can be claimed on the things used for your business. So, if you need to buy several equipment like vehicles, plants and machinery, fixtures and fittings for your business, you will be able to claim capital allowances.

To claim all these expenses, you must always keep accurate and complete records of all these business expenses. This is because HM Revenue & Customs (HMRC) may ask you to provide proof of the expenses you are claiming for.

Alternatively, you must be careful not to involve any expenses which are not under this list. If you do this, you will be in serious trouble.

If you want an unbiased and expert view on how to claim such expenses you are entitled to, you can contact us today at 020 7060 9556.