Allowable Self-Employed Expenses Guide
Whether you are a self-employed plumber, freelance journalist, or physiotherapist, the costs associated with running your business are unavoidable. HMRC has specific rules regarding what you can and cannot include in your calculation, which is why the costs that you can include are referred to as 'allowable expenses. To assist you in navigating this, we've compiled a list below of the expenses you can claim when filing your Self-Assessment tax return. Profits are calculated by subtracting income from expenses. Due to the fact that you will be taxed on profits only, the higher your expenses, the lower your tax bill. If you are not registered for VAT , you can deduct the total amount spent on expenses, including VAT. While purchasing or improving capital items such as a van, business premises, equipment, or fixtures/furniture are not considered business 'expenses' for tax purposes, they may still qualify for tax relief if they are related to your business. Capital items