As a self-employed individual in the UK, you have the ability to claim a variety of business expenses to reduce your taxable profit. These expenses must be solely and exclusively for business purposes. Here are some common deductible expenses:
Office Costs: This includes office supplies like stationery, postage, and printer ink. Additionally, you can claim a portion of your home office costs if you’re working from home, which covers utilities such as heating, electricity, and internet.
Travel Expenses: You can claim for business-related travel expenses, including fuel or public transport costs, parking, and accommodation for business trips. Note, however, that commuting from home to your regular place of work is not a deductible expense.
Professional Fees and Subscriptions: Memberships to professional bodies, union fees, and subscriptions to trade journals directly related to your business are deductible.
Clothing: You can claim for protective clothing needed for your work, but not for everyday clothing, even if a specific outfit is only worn for work.
Staff Costs: Wages, salaries, bonuses, pensions, and benefits are deductible if you employ staff.
Marketing and Advertising: This includes expenses related to advertising, website costs, and marketing campaigns.
Training Courses: Training that helps you improve skills you already use in your business is deductible.
Legal and Financial Costs: Includes bank charges, interest on business loans, and the costs of hiring an accountant.
Business Premises: Rent, maintenance, and utility costs for your business premises are deductible, though you have to distinguish these from private living costs if you work from home.
Bad Debts: If you’ve included a sum in your turnover but you’re not going to be paid, you can claim this as a bad debt.
It’s essential to keep accurate records of every business expense, including receipts, invoices, and relevant financial statements, to substantiate your claims. The UK government updates allowable expenses periodically, so it’s wise to consult with a tax professional or check the latest HMRC guidelines to ensure compliance.