Allowable Expenses - What are You Allowed to Claim for?

 

Allowable Expenses - What are You Allowed to Claim for?

 

In the UK, if you are self-employed then you will be required to complete a self-assessment tax return that has to be submitted to HMRC. This will indicate your income as well as the income tax that you are required to pay.

This is a serious aspect of running a business and so, you need to make sure that you get it right. If you fail to do so, you could be hit with severe penalties. Therefore, it can help to use a tax accountant in Croydon to help you with your returns. Finding a good tax return accountant is a worthwhile investment and one that can help to keep your business on track.

If you choose to use the services of an accountant, they will be able to help you deal with the challenges of tax. Despite this, it still helps to know what allowable expenses you can claim for.

Office Expenses

There are a number of expenses that fall under this category and this will include business stationery, printing costs as well as postage while you can also claim for equipment such as computers and tablets. However, these might have to be claimed as capital allowance if you don't use cash basis accounting but this is something your local accountant will be able to assist with.

Costs Associated With Business Premises

If you need the use of premises then you can claim for the cost of rent and maintenance as well as utility bills, insurance and keeping the premises secure. However, it is not possible to claim for expenses that are linked with buying or building the premises yourself.

Not every business will have premises which means that you might run you run your business from home. If this is the case, then you can include a portion of your utility bills which will need to be worked out as a percentage based on how much of the home is used for business. If you do work from home for a minimum of 25 hours per month, then it is possible to use simplified expenses which is a flat rate that is provided by the government.

Travel Expenses

For some, things can seem complicated when it comes to travel expenses but your accountant can help you to submit the correct expenses. All business-related car or van costs can be included such as vehicle insurance, hire costs, fuel, repairs and servicing. Again, it is possible to use the simplified vehicle expenses which is calculated by the government.

If you travel by public transport such as train, plane, bus or taxi then you can also submit these costs along with hotel rooms and meals.

Stock and Raw Materials

It is possible to include the cost of raw materials, stock and the costs that are associated with producing products.

Financial Costs and Legal Costs

Many people ask the questions “Can I claim accountant fees on my tax return?” and the answer to this is yes. So, whether you use an accountant for bookkeeping or payroll, you can claim the costs. It is also possible to claim for legal costs including solicitors and other costs such as surveyors or architects.

If you have any charges associated with bank or credit card charges and overdrafts as well as interest on bank or business loans then these are also considered allowable expenses.

Insurance Costs

Most businesses will need to have insurance whether that is property insurance or professional indemnity insurance. Whatever it might be, they can be included as part of allowable expense claims.

Clothing

If you have to wear a uniform as part of your business or you require specialist protective clothing, then it can all be claimed for. However, it is not possible to claim for standard clothing that you wear to work.

Staff Costs

Staff salaries will count towards allowable expenses and this will also include pension contributions, bonuses, benefits and any agency fees as well as National Insurance contributions.

Marketing Expenses

Most businesses will need to market their services or products. Therefore, any costs associated with advertising or running a website can be claimed.

What To Take to An Account for Your Tax Return?

Your accountant will need all receipts, invoices and other forms of proof when it comes to identifying expenses. Giving your local accountant in Croydon all of the correct paperwork will enable them to efficiently calculate your tax bill, ensuring you do not overpay.

If you have any queries about your tax return or are wondering “ How to find a great tax accountant?” then get in touch with TaxAccoLega. Our team of experts are on hand to help you with all of your tax needs.

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