Fast, effortless and 100% online.
Are your niche expenses outweighing the perks of being a freelancer? Then listen up.👂
Too many of you freelancers are not making the most of your deductible expenses – don’t think we haven’t noticed!
We get it, HMRC’s expense rules are pretty cryptic (shock!). But, you have us to decrypt it for you, and give you the inside scoop. 😉
Expenses are costs incurred in relation to your business which can minimise the tax you pay.
If you’re a freelancer (or anyone earning money) then all of the income you earn above the personal allowance, £12,570, is taxable.
But, HMRC will not tax you on money you’ve spent to run your business. Woohoo!
This means you can deduct expenses from your income when figuring out how much tax you might owe.
Internet, telephone, gas, water, and electricity bills. All the tools you need for the perfect cuppa.🤭
Yep, that includes the cheeky Nandos you took your client for.
Pens, pencils, paper, and ink are all reasonable requests. Even those pastel Post-it notes you totally needed. 😚
Just remember, your expenses must be exclusive to your line of work!
A freelancer is someone who is self-employed; typically earning an income on a per-job or per-task basis.
Freelancers generally, but not always, work in creative, service, or skilled sectors. 🧑🌾
There are all sorts of jobs, and whilst you might think that yours is too ‘niche’, it truly is in the eye of the beholder.
Here are some examples of ‘niche’ jobs that we’ve done tax returns for and some of the expenses they claimed:
Creating content requires apps, software, hardware, and lots of technology and other bits we wouldn’t usually think of. Here are some types of content creators:
When you think of services, you might think of a maths tutor, cleaner, or landscaper. But the list doesn’t end there…
Just when you thought we were done, here are some more careers worth a mention:
These are all people who have come to us to take away the stress that comes with being self-employed.
(Side note, congratulations for being your own boss! We know it’s not always easy.👏)
If you’re still unsure, or just a bit nosey, you can check out our blog on self-employed trades you didn’t know existed. 👃
Now you know what a freelancer is, and you’ve maybe found some new job inspiration, we’re going to tell you the most ‘niche’ freelance expenses we’ve seen.
We’ve come across some intriguing ‘niche’ expenses in our time, so let’s get exploring!
Gym memberships are pretty common these days, and as long as you can prove your membership is a business expense then it’s tax-deductible.
We’ve got more on when you can deduct a gym membership if you’re curious.
Yes! Claim the expenses you’re eligible for, and you’ll minimise your tax bill.
A lot of people have started to work for themselves. But, many don’t know all the rules when it comes to tax, claiming expenses, allowances, and more.
Trust us, bringing your tax bill down legally is possible when you know what you’re doing which is why we’re here to help!
If you want to figure out how much tax you’ll owe before claiming expenses, then you can use our handy Income Tax calculator below.
When you’re self-employed, you have to pay your income tax and national insurance contributions yourself in your annual Self Assessment. Our calculator helps you quickly assess how much you owe.
However you may be eligible for a tax refund when:
In your case when you earn £50,000:
You pay no income tax on first £12,570 that you make
You pay £7,286 at basic income tax rate (20%) on the next £36,430
No contributions on the first £9,568 that you make
You pay £3,549 in contributions (at 9%) on the next £39,432 that you make
You pay £159 in NI Class 2 contributions
Yes, Bob the Builder can expense a hard hat. No, he can’t expense false nails. 💅
But, sometimes it’s not as simple as that. So, if you’re looking for even more information on expenses, don’t worry, we’ve got you. Here are some extra tips and tricks to help you understand how to claim expenses.
Sign up for important updates, deadline reminders and basic tax hacks sent straight to your inbox.
"*" indicates required fields