Not a problem. Simply email us or give us a call for an informal chat. We’d be happy to advise you. Below, however, is a brief explanation of the basics.
An introduction to expenses.
Self-employed: expenses you CAN claim
Travel and accommodation you can claim:
Running costs of a car or other vehicle, including petrol, car tax, insurance, repairs and servicing.
- If you also use the car privately, you can claim only a proportion
- This is usually the ratio of your business mileage to your total mileage
- It's worth keeping a log of business mileage for a representative period as well as all bills.
Travel and accommodation on business trips and between different places of work can be claimed as well.
Dedicated business premises:
The following can be claimed if you work from dedicated business premises:
- Water rates
- Business rates
- General maintenance
Working from home:
If you work from home you can claim a proportion of costs, such as lighting, heating, cleaning, insurance, mortgage interest, council tax, water rates and general maintenance.
The proportion should be based on, say, the floor area or number of rooms used for business, and the proportion of the time it is used for business if it is not for exclusive use.
Salaries and benefits you can claim:
- Employees' wages and redundancy payments
- Employer's National Insurance
- Insurance and pension benefits for employees
- Any employee childcare provision you make
- The cost of training employees
Self-employment: expenses you CAN'T claim
Travel and accommodation you can't claim:
- Travel between home and workplace
- The cost of buying a vehicle (but may qualify for capital allowances)
- Meals, except reasonable amount for breakfast and evening meals on overnight trips.
You cannot claim the initial cost of buildings, alterations and improvements (such as extensions to house your business) – although such work may qualify for annual investment allowance or capital allowances.
Salaries and benefits you can't claim:
If you are self-employed you cannot claim your own wages, salary or other money drawn from the business.
You are also excluded from claiming your own National Insurance contributions and income tax. your own pension costs, life insurance.