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business expenses what is allowable against your tax bill.
Business expenses- what can I claim for
What expenses can I put through the business- what is a business expense
Car: you can put all costs of your car into your business. You should keep a mileage record which shows business mileage.
If you car does 1000 mile per month in total on average and 100 miles were for business use you can then claim 10%
of all car costs – ie 100 /1000 = 10% Car costs can include - repairs/tyres/petrol/road tax.
You can also claim wear and tear of the Market value of your car each year. This is called Capital Allowances-
it is allowed at 10 or 20% depending on the car. You can claim 10% of the capital allowances for business use.
Stationery/postage: all stationery pens/paper/ computer toner cartridges used by your business for business use
IT support Website: any costs relating to having a website built / the maintenance and hosting of the site
– any ongoing IT support
Telephone: Both mobile and personal home phone can be claimed. Where the phone is used for business and private use,
the private element is not allowed against your business. So keep a rough record of how much is business use.
It is good enough to say an approx %.
Training Costs: The cost of initial training to enable you to trade and commence your business is NOT allowable against tax.
However any ongoing training, CPD courses etc are fine.
Accountants Fees: All costs you pay to your accountant.
Bank Charges: negotiate 2 years free banking currently offered by some banks on new Sole trader business accounts.
After that all bank charges can be treated as expenses.
Clothing : Only protective clothing such as hard hats and boots. Any other clothing suits etc are not allowed.
Insurance: Liability insurance- income protection insurance
Home Use: you may use some of the house for business use.
Make sure that you DO NOT dedicate one room for business or you may have to pay Tax on a business asset
if you sell your house. AS long as you use the room for some other purpose at any time during the week