Business or Pleasure?
Often when you are self-employed, you live and breathe your work.
Despite this, you cannot claim all your expenses; general rule of thumb is:
IF IT IS NOT SPECIFICALLY FOR THE WORK YOU DO, YOU CAN’T CLAIM IT!
This includes the coffees you get on your way to work, the gym to keep your stamina up, all your broadband and mobile costs.
Here is a brilliant link to an HMRC website which explains what you can and can’t claim:
Mobile phone - you would have a mobile phone whether you worked for yourself or someone else - claim your work things only
Broadband - you would have the internet whether you worked for yourself or someone else - claim your work things only
Tea/Coffee/Food - if you could have made it at home, you can’t claim it!
Home expenses - if you have 4 rooms and you work in 1 of them, divide your bills by 4 and claim a quarter for work use
Stationery - all can be claimed if it is work related
Clothes - costumes or protective clothing can be claimed in full, BUT if you wear clothes to work or during work you cannot claim
KEEP ALL YOUR RECEIPTS IN DATE ORDER
(not category order)
This will save you and/or your bookkeeper so much time!!
All breakdown and budgeting is done month by month.
Every type of work has it's own expense and you will know what is bought for your work ie. paint, brushes, tools, printer cartridges, etc., but it worth remembering that the more tax you pay, the more money you are making!
Write to us if you need help