There are many expenses that you can claim as a self-employed and pay less tax.
Before we go into the actual list, it’s very important to know which accounting method you use: cash, traditional, or simplified.
Here are the costs you can claim:
Just claim items you’d normally use for less than 2 years as allowable expenses.
You can claim expenses for:
You can claim the equipment as:
You can claim things like:
If you need to use special uniforms, protective gear, or costumes (say, you're an actor), then you can claim these for work.
Of course, you cannot claim everyday clothing (not even a business suit).
You can claim any transport expenses related to your sole trader business:
How you claim depends on how you do your accounting:
You also can’t claim as transport expenses:
You can claim costs for hiring other people (subcontractors).
You can also claim for:
If you’re producing a physical good, you can also claim:
You can claim various fees like accountants (including TaxScouts) and solicitors.
You can also deduct costs for:
There are only a few legal costs that you can't claim:
It’s very important to note that if you’re using cash basis then you can only claim up to £500 in interest and bank fees.
If you’re using traditional accounting, you can claim them as "bad debts" (of course, if you’re sure that you won't recover them in the future - at all).
If you're using cash basis, there's nothing you can do besides taking the matter to court.
You can claim allowable business expenses for any kind of marketing costs:
You can not claim for entertaining clients, suppliers, and customers - so a business lunch might be acceptable, but a night out with a lead is not.
Regardless which method of accounting you use, you must keep records of all your business expenses as proof of your costs. HMRC doesn't need them for your tax return, but you might get asked for them if you ever get audited!
On our website you can do it with just a few clicks and a spreadsheet or your phone.
Get your self assessment prepared for you online by certified accountants for £99
Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.
You can talk to one of our tax assistants at any time during the process when you have any questions.
We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.
Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.
We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.
We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.
Our service allows people living abroad to prepare their income tax return online. We are able to process all returns regardless of your current country of residence.
UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.
Long Lets, Airbnb, Capital Gains. TaxScouts will sort out your self assessment and take away the worry of tracking all the recent tax changes.
TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.
At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.