AS THE DEADLINE FOR self-assessment tax returns approaches, tax rebate specialists DSR Tax Claims look at the expenses you might have missed or forgotten.
Self-employed taxpayers running their own business operations will incur a wide range of expenses, depending on the nature of the business.
Expenses can include travel and membership of professional bodies as well as money spent on services like insurance, accountancy and legal services.
David Redfern, tax preparation specialist and Managing Director of DSR Tax Claims Ltd said. “When looking at which expenses should be included on a tax return, most taxpayers in self-employment will remember those expenses which directly relate to running their business or continuing to trade, such as premises, tools and equipment, staff costs where applicable and any stock they might require and these can be quite sizeable in certain types of business.
“Many taxpayers will consider their list of expenses to end there – however, there are many hidden business expenses which HMRC consider to be legitimate business expenses and ensuring that these are factored into your Self Assessment tax return is a vital part of running a financially viable business.”
Mileage and more
Travel is one well-known expense, with mileage costs of 45p per mile to be claimed, as can public transport, and parking.
However parking tickets or legal fees on personal criminal wrongdoing would not be, as these are considered an avoidable expense.
Advertising and training are also covered.
Redfern continued: “Many self-employed taxpayers will also pick up advertising costs and bank charges, as well as potentially requiring a professional subscription in order to trade. These expenses may also include essential training that you are required to undertake in order to be able to continue your profession.
“Another area of hidden expenses can be home administration costs – where the taxpayer is providing business administration services from a home office, including the costs of running a home computer and postage services for providing invoices to customers and so on. These costs on their own may seem insubstantial but will soon mount up when collated.”