Tax for Self-employed: tax allowable expenses


Many business purchases can be offset against income tax.

If you are self-employed, you can claim expenses against your tax bill, but not all business expenses qualify, so it’s important to make sure your claim is valid.

As a general rule, unless something you buy for your business is capital assets- such as a computer or machinery (which you claim for under different rules), you can deduct its full cost when working out your taxable profits. You get immediate tax relief for the full amount.

Here are some key expenses you can claim.

Working from home

If you work from home you can claim a proportion of  home costs, such as Gas, Electricity, Water,  cleaning, insurance, mortgage interest, council tax, water rates and general maintenance.

The proportion should be based on, say, the floor area or number of rooms used for business, and the proportion of the time it is used for business if it is not for exclusive use.

Salaries and benefits

These can be claimed for as follows:

  • Employees’ wages and redundancy payments
  • Employers’ National Insurance
  • Insurance and pension benefits for employees
  • Any employee childcare provision you make
  • The cost of training employees

If you need to speak to a Tax Adviser, please contact us on 0208 679 4690 or need more information about  what other expenses you can claim,  please Visit our  website. 

Categories: Self Employed, Taxes

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