blog header image

Posted : 28 Jul 2020 at 11:35:36
Category: News

Share this article

If you're self-employed, you will have various running costs. Some of these expenses you can deduct on your tax return as allowable expenses.

Allowable expenses do not include money taken from your business to pay for any private purchases.

If you run your own limited company then the rules for expenses and business costs are worked out differently, below is a list outlining the allowable expenses and capital allowances you can claim back.

For more information about self-employed tax returns contact Genius today on 03303350400

Genius Money - Tax Return Service

Expenses that you can claim

Capital allowances you can claim

If you use the traditional accounting method you can claim capital allowances when you buy something you keep to use in your business.

  • equipment
  • machinery
  • business vehicles, for example cars, vans, lorries

If you use the cash basis accounting method and purchase a car for business use, you can claim this as a capital allowance. However, all other items should be claimed as allowable expenses as outine above.

If something is used for both business and personal reasons

You can only claim allowable expenses against the use for business costs.

Example: Your mobile phone bill for the year totals £200. Of this £ 70 is for business calls only. You can therefore claim £70 for business expenses.

If you work from home

You may be able to claim part of the costs for any of the below as business costs:

  • heating
  • electricity
  • Council Tax
  • mortgage interest or rent
  • internet and telephone use

A reasonable method for dividing the costs for business use in the home will need to be used, for example by the number of rooms used for business or the amount of time you spend working from home.

Simplified Expenses

You can avoid complex calculations for working out your business expenses by using  simplified expenses. This is where a flat rate can be used for:

  • vehicles
  • working from home
  • living on your business premises

 

 

SIMILAR NEWS

blog header image
NEWS
DEMAND FOR CONSTRUCTION WORKERS CLOSE TO 20 YEAR HIGH

The staff shortage in construction is continuing to bite, with 33,000 job vacancies for the period of April to June according to the latest figures from the Office for National Statistics. It is the s ...

blog header image
NEWS
2021 BUILDING MATERIALS SHORTAGE: WHAT IS THE PRICE OF BUILDING MATERIALS?

Covid-19, Brexit and booming demand are combining to drive up prices for the essential materials the UK’s construction sector desperately needs. Bluebeam takes a look at the 2021 build ...

blog header image
NEWS
MORE THAN 160,000 STILL FURLOUGHED AT END OF APRIL

More than 160,000 construction workers remained on furlough at the end of April, new figures have shown. Data released by the government this week showed that 166,600 roles in the sector were bei ...

blog header image
NEWS
CONSTRUCTION LEARNERS TO GET SITE SKILLS CARDS

Construction trainees will soon be given their own skills cards to help oversee work placements. The new Industry Placement Card will help support learners transitioning from the classroom into the ...

blog header image
NEWS
NUMBER OF FURLOUGHED CONSTRUCTION WORKERS FALLING FASTER THAN WIDER ECONOMY

Number of furloughed construction workers falling faster than wider economy  Latest HMRC data shows size industry’s furloughed workforce shrank by 15% in March The numbe ...

blog header image
NEWS
WILL THEY COME BACK? WHY BRITISH CONSTRUCTION LOST ITS EASTERN EUROPEAN WORKFORCE

In recent weeks, a persistent rumour has been circulating about migrant workers in construction. The specifics differ, but the central premise is the same: ‘foreign workers have taken the govern ...

business-directory Business Directory
smartbusinessdirectory Payroll Services Business Directory
truebusinessdirectory payroll-services Directory
payroll-services Directory