Business needsA business need is equipment that is necessary and essential to the running of your business. For example computers, printers and software. Johnny’s lighting rig would also fall under this category as it is a necessity for him to have one - nobody likes dancing in the dark (unless you’re Bruce Springsteen).
Travel and subsistenceIf in your working day you travel to other destinations away from your place of work you may be able to claim these as a travel expense. Note, your journey to and from work is not claimable. Depending on your specific mode of transport, HMRC allow you to claim a certain rate per mile. Whether you use a car, van, motorbike or bicycle to journey around, being aware of what business mileage you can claim will lower your profits and increase your take home pay. You’ll also need to record business mileage slightly differently - you can grab a free mileage log here. Let’s say Johnny works from home on his mobile disco business the majority of the time - making playlists, taking bookings etc. He travels in his van to different locations throughout the week. His business mileage would be claimable as an expense.
Office costsEven in the digital age people still use pens, pencils and postage - amongst other office equipment - to ensure their business runs smoothly. These type of items are eligible for business expenses.
Business premisesIf you’re a sole trader working from home for more than 25 hours per week you’ll be able to claim expenses. This simplified, flat rate expense claim saves on having to calculate the proportion of business use you’re getting from your utility bills. Hours of business use per month Flat rate per month 25 to 50 £10 51 - 100 £18 101 + £26 Use this simplified, flat rate expenses system and calculate your expenses whilst filling out your self assessment. For a limited company, the HMRC offers a flat-rate £4 a week claimable expense.
ClothingClothing expenses can be claimed for work uniform - as long as it carries a company logo. Protective clothing e.g. steeltoe boots or protective eyewear are also claimable expenses.
EyesiteAs long as your business has you using visual display equipment for continued amounts of time, the cost of an eye examination can be claimed as an expense. Note however that the cost of glasses, frames and lenses is view by a dual purpose - you use it for both home and business and therefore cannot be claimed as an expense.
FinanceWe’ve all gone into the red occasionally. Luckily, you can claim business costs for bank, overdraft and credit card charges plus any insurance plan your business may have. You can’t claim for repayments on loans, overdrafts or finance agreements. And saving the best until last: you can join Crunch and have one of our lovely accountants help with your finances and this can be claimed as an expense. What wonderful news! Find out more about allowable business expenses in our free expenses guide. Andy Paterson, Crunch Crunch is a ground-breaking online accountancy firm for freelancers, contractors and small businesses. By combining accredited, award-winning in-house accountants with internally-developed cloud software, Crunch delivers a complete business accountancy service for a flat monthly fee. No costly extras, your own personal account manager, and maximum tax efficiency. The monthly fee is just £64.50+vat. Try the free demo here.
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