8 Purchases You Didn't Know Where Tax Deductible?
ACCOUNTANTS IN MANCHESTER
Who doesn't love a refund?! We've got a list of 10 purchases that you didn't know where tax deductible. Scroll on...
When preparing your annual self-assessment, it's important to know what counts as an allowable expense. HMRC states that anything you claim must be 'wholly and exclusively' for business purposes. Sounds straight-forward right? The reality of this is a lot more complicated than most people would like to admit. Throw in all the rules and regulations surrounding small businesses, sole traders, limited companies and the whole topic can quite quickly become very complex indeed, not to mention many people miss out on claiming back for all of their allowable expenses.
- Gas/Electricity/Water/Council Tax
If you work from home a proportion of your housing costs, including mortgage/rent and telephone/broadband can be classed as an allowable expense.
2. Office repairs and maintenance
As time goes by, things begin to wear away such as wall paint and need re-coating, you may hire a monthly window cleaner for your business windows and doors, or you may require maintenance works on your security gates; you can claim expenses such as these back.
3. Employee Training
All training, including courses, webinars, formal qualifications, such as NVQ's, Degrees etc, can all be claimed back. Even better, that anybody employed for the company can claim back tax on any type of training courses right up to director level.
4. Business Start-Up Costs
There are so many expenses when you start up a new business; legal registration costs, website and domain costs, computers and software, office furniture etc. What's more is that you can claim these expenses back up to 7 years before you even start trading! Now that's something to chew on for a bit isn't it.
No! This does not mean your seasonal shopping spree, but uniform, branded or not, protective workwear and other business outfits can be claimed as an expense when used for business purposes.
Petrol/Diesel, vehicle insurance and breakdown cover can all be classed as tax deductible.
7. Bank Charges
Yep, you heard us. You can claim tax relief on bank charges, overdrafts, credit card charges, hire purchase interest, leasing payments and interest accrued from business bank loans.
8. Business Trip Expenses
Something a lot of people try and make the most of at times! But allowable purchases are as follows: transport costs, congestion/toll charges, parking fees, accommodation, food and drink, business phone calls, uniform/clothing.
If you need help filing your personal tax return or need any accountancy advice then please do get in touch, sooner rather than later.
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