Expenses
What can I claim for?
The following expenses can be claimed for tax purposes. Taking these into consideration, we can advise on those which are applicable to your business or market sector.
- Working from home allowance
- Mileage
- Phone and internet costs
- Accountancy and professional fees
- Cost of goods that you purchase to sell or provide a service
- Rent, rates, power and water
- Advertising
- Insurance
- Uniform
- Interest on business loans
- Car, van and travel expenses
- Irrecoverable debts
- Postage
- Stationery
- Professional journals
- Safety wear
Allowances
It’s easy to overlook capital allowances, or to incorrectly account for expenditure on an asset, but treated properly it can make a huge difference to your tax planning, tax bills and therefore your profits and cash flow.When you buy an asset - a vehicle, tools, machinery or other equipment - for use in your business, you cannot deduct your expenditure on that asset from your trading profits. Instead, you may be able to claim a capital allowance for that expenditure.
The aim is to give tax relief for the reduction in value of qualifying assets that you buy and own for business use by letting you write off their cost against the taxable income of your business.
Capital allowances are available to sole traders, self-employed persons or partnerships, as well as companies and organizations liable for Corporation Tax.
Common Allowances?
Some of the more common items to qualify for allowances include:
- Vans
- Cars
- Furniture
- Computers
- Machinery
- Toolsn
- Equipment
- Timing and delaying VAT payments
- HMRC visits
AIA is available for most businesses, including partnerships. It is not available for trustees or mixed partnerships (partnerships which are not made up entirely of individuals). Businesses can claim an AIA for capital expenditure incurred on most items of plant and machinery.
If you would like to find out more then please give us a call on 01985 850622 or you can email us at us at info@johnnuth.co.uk.
