Im self empoyed how do I know what I can and cant claim as expenses?

Obviously I know I can claim all my equpitment, but can i claim work clothes? how much of my phone bill, travel expenses ( i use public transport, so i purchase a weekly travel card)??
thanks!!

Hi

The rules for this can get a bit complicated but essentially you are alowed to claim anything that is used "wholly and exclusively" for the purposes of your business.

Equipment comes in two groups - stuff that is small and is likely to be replaced often (e.g. for builder that might include trowels, hammers, etc) which can be written off straight away and stuff that has longer life (for which you claim capital allowances - 100% relief up to 拢50K).

Clothes are not allowed, except for PPE (Personal Proprective Equipment). However uniforms may be allowed if they are distinctively a uniform and can be clearly shown to represent your workplace (so for instance, polo shirts with an obvious logo on are OK. A pair of ordinary grey trousers is not allowable).

Telephone bills - you can claim for the calls you make for business (so have an itemised telephone bill) and a percentage of your line rental that relates to those calls. You should put your mobile through your business account and the contract should be with your business (not with you personally) - then it is generally allowed as well.

You cannot have travel to your regular place of work, but you can have travel from your regular place of work out to clients and so on.

If you work from home you can have a small contribution towards use of home as office - the amount for this varies but is essentially a 'reasonable' contribution towards the additional costs incurred in doing so (your accountant can guide you through this).

Of course, your professional insurances are deductable.

Don't forget to claim for relevant professional subscriptions and any relevant trade magazines, postage, stationery, advertising, pens/pencils, etc.

The rules for subsistence are also complex, but taking the rules which allow me to pay subsistence to my employees as a guide:

You can have breakfast if you have to be out before 7am and are going to be away from your regular place of work for more than 5 hours. You can have lunch if you are out at lunchtime, and are away from your regular place of work for more than 5 hours, and you can have dinner if you are out after 7pm, and have been away from your regular place of work for more than 5 hours.

Essentially the rules on subsistence are that you are only allowed what would be 'additional' (over and above) what you would normally incur normally, and so these rukes give some guidance as to how to work out whether it is additional. I personally recommend the 'taking the mickey' rule. If your mates down the pub would say you are taking the mickey, you probably are!

Using your car - you can claim 40p per mile for the 1st 10,000 miles in a tax year. 25p per mile thereafter (I tend to recommend claiming mileage rather than putting your car through the business). Vans are slightly different, but even there you have to adjust for personal use so mileage can work out better.

There amy be loads of other things relevant to your particular business - but remember the basic rule that it must be used for the business.

Your accountant can help, of course.

David Nicoll
"the accountant with attitude"

Keep your travel card and claim for it. You will have to work out with you telephone bill how much of it is personal and how much is business then just claim the percentage of your business calls. You can claim work clothes small tools and equipment home as office materials insurance accountancy and professional fees. Post and stationary if you have to pay for a licence or anything claim it. Travel and subsistance. Motor expenses interest on loans (make sure this is in your financial year) Any wages you have to pay to subcontractors