Self-Employed Business Expenses Explained
Understanding what does and doesn’t constitute an appropriate self-employed business expense is one of the toughest challenges recently self-employed business owners have to face.
Knowing the difference between an allowable business expense vs. a non-allowable expense can help you avoid not claiming for something you legally have a right to claim for, and having to have an awkward conversation with HMRC should you make an incorrect claim.
Though you should always keep in mind the fact that any expense you claim for must be the result of something that is ‘wholly and exclusively’ for business purposes, the below summary should give you a much better idea of what expenses you can confidently apply for.
It should be noted that you cannot claim expenses on items you purchase to keep and continually use in your business, such as laptops, desks, or vehicles. In the majority of circumstances these can be claimed as capital allowances instead.
Read more
What Are Simplified Expenses
Recently we published a post on allowable self-employed business expenses, an article that’s of particular use if you’re recently self-employed, as understanding the differences between allowable and non-allowable self-employed expenses can cause some frustration.
This week we’re looking at simplified expenses; a way of calculating certain business expenses using flat rates. You can apply simplified expenses if you’re a sole trader or you’re in a business partnership without any companies as partners.
Flat rates can be used for calculating three areas of your business expenses: vehicle costs, the cost of working from home, and the cost of living in your business premises.
Read more
Don’t Forget Your VAT Return and Payment Deadline
It’s understandably in HMRC’s best interest that you submit your VAT Return (and any necessary payments clear their account) by your VAT payment deadline date.
Though HMRC show leniency to first-time offenders, especially if you’re turning over less than £150,000 a year, you’ll find yourself having to pay penalty charges should you continue to default on your payments in the twelve-month period following a default.
Read more
How to Claim Expenses if You Work from Home
You’re not alone. Knowing what expenses you can and can’t claim back when working from home can be a headache for many of us, with the complexity of the issue often causing us to not claim back all the reliefs we’re entitled to.
To help shed some light on this complex issue we’ve detailed below six areas that are often at the top of mind when trying to decide upon what expenses can and can’t be claimed back. To ensure you don’t miss out on the tax reliefs you’re entitled to, keep reading.
Read more