Self-Employed Allowable Expenses Explained

When you are self-employed you’ll want to be saving money wherever you can. And that includes claiming on expenses where you can. Today we are going to be taking a closer look at self-employed allowable expenses and what you should be claiming as expenses for your business if you can in order to make your money go further.

Unfortunately, you can’t subtract all of your expenses. However, there are plenty of allowable expenses for the self-employed that can help you save money. And so that you’re not claiming for expenses that you shouldn’t, we are going to be clearing up what you can and can’t claim on.

What expenses can I claim?

If you’re self-employed these are some of the expenses you can claim for when it comes to completing your tax return:-

  • Office expenses such as phone and internet bills, stationery, printing, software and business equipment that you’ll use over a longer period of time.
  • Expenses for your business premises include rent, maintenance and repair costs, utility bills, insurance and security.
  • Costs associated with travel such as vehicle insurance, fuel, hire charges, repairs, servicing and breakdown cover costs. You can also claim for costs such as travelling to business meetings and costs for hotels when having to stay overnight.

What you can’t claim against

It’s important to know what you can’t claim against so that you’re not hit with any unexpected extra costs when it comes to filing your tax return. Expenses you can’t claim for include:-

  • Costs associated with entertaining clients.
  • Expenses for travelling from home to work.
  • Anything that both has a benefit to you and also to the business.

Capital allowance claims

Another form of expense you can claim against is known as capital allowance claims. It’s important to note that these do differ hugely from allowable expenses. These are expenses that you incur as part of your day-to-day business. And if these expenses benefit your business but will last more than a year, they’re known as capital expenditure. This can include things such as vehicles and machinery.

If your business uses traditional accounting, you are able to claim back against your taxable profit for these expenses. They must be claimed when you file your self-assessment and claimed 12 months from the 31st January deadline for filing the return.

Want to know more?

If you’re self-employed and you want to know more about what you can claim against in your particular situation, we’re here to help. Here at D&K Accounting, we’re a team of Profit First professionals who have years of experience in helping individuals and businesses across the UK look after their finances.

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