When it comes to your own business, there are many balls you will need to juggle at the same time. This includes tax and accounting matters.
Sole Trader Tax Returns
Southside Accountants in Wimbledon are dedicated to supporting self-employed small business owners to navigate through some of the trickier parts of running their own business. Particularly when it comes to tax returns and the tax reliefs that you can claim.
Tax relief can be used to offset any taxable profits that you may have when filling out a self-assessment tax return. These are costs directly related to running your business and can help you recoup some of the money you may have paid out and, in turn, pay less tax.
There are many aspects to completing and submitting a tax return that you will need to consider, so let us help you by reading through this guide to business expenses that can be claimed for as a sole trader.
Uniform or work clothing
If you wear a uniform for your everyday work that needs to be cleaned and washed, you can claim back on ensuring that your uniform is cleaned and dried. It is important to remember that you cannot claim for clothes you could wear as an everyday piece of attire, just clothes you can only wear to work. For example, a nurses uniform.
Travel and vehicle expenses
If you use a vehicle for work, you need to look at claiming for your travel and running expenses. Much like many of the things you can claim back on, you need to ensure that you are only claiming for the portion of your vehicle costs related to your business activity. Nothing else.
You can choose to work this out yourself, taking everything into account; however, you may find that it is just easier to use the simplified method that HMRC has in place to claim for 45p per mile for the first 10,000 business miles that you drive and then 25p per mile after that.
Tools and other equipment
If you need tools to do your work, you will want to find out whether you can claim back on any elements of these items. The good news is that you can claim back for replacing and maintaining any equipment that is essential to your business, as well as claiming tax relief through capital allowances when you initially buy the item too.
Household expenses
You can also claim for household expenses if you do work from home. This includes rent, mortgage interest, council tax, water, electricity, heating, property repairs, and cleaning costs.
You need to work this out by thinking about the above costs and how much of them you need to use for work purposes. However, much like many things out there in tax relief, there is a simplified way to claim this element of your business.
Speak to us and find out how an expert accountant in Wimbledon can help you make the most of your money.
If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.
Leave a Reply