What Are Self-Employed Expenses?
There are many tax return requirements that you will need to consider if you are currently self-employed. This is particularly relevant if filing tax returns online. Self-employed expenses are certainly some of the most important factors that you need to consider. While the team at SRG LLP is more than happy to help, it is still wise to take a look at what you can claim in terms of self-employed expenses.
Why Are Deductible Expenses Important Tax Return Requirements?
The government understands that many self-employed individuals are dealing with limited budgets. Therefore, specific regulations will allow you to deduct certain expenses when you choose to register for self-assessment. The main goal is to provide you with an additional level of liquidity that can be funnelled back into your venture.
Self-Employed Expenses: What Can be Deducted?
Self-employed expenses are any expenditures that can be deducted from your tax obligations. While these will vary between different organisations, they can still be broken down into different categories. Some examples include:
- Office expenses such as stationery and printer ink.
- Costs associated with your premises such as rent, maintenance, and utility bills.
- Travel expenses (as long as they are directly related to your business).
- Raw materials and in-house stock.
- Insurance for business purposes.
- The costs of a marketing campaign.
- Staff salaries, bonuses and any contributions placed towards a pension.
We should also note that you have two choices when filling out a self-assessment tax form. You can include all of the expenses mentioned above as a lump sum or you can choose to segment them into different categories for a greater level of clarity. Finally, be sure to keep any receipts or proofs of payment associated with these costs. These may be needed if you happen to be investigated by the HMRC in the future.
Why to Register for Self-Assessment Status
If you are currently self-employed and any of the expenses mentioned above are relevant to your organisation, you will have to register for self-assessment and file tax returns.
The professionals at SRG LLP are more than happy to provide you with additional online tax services in order to take away the guesswork. Please do not hesitate to contact one of our professionals at your convenience.