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Business founders/entrepreneurs

Self employed - what kind of business expenses do you claim for/document?

36 replies

Comfysock · 26/01/2024 17:04

All new to me, just started out. No office working freelance from home marketing and PR. By ApriI I know I will have gone over £1,000 threshold for tax. So far Im wondering if I can claim.for:

I took a client for lunch it was a working lunch to discuss a project. I paid cash but have a receipt

Have a breakfast meeting booked this weekend for a potential new client. Can I claim for this if I pay?

Petrol and mileage - although car isnt registeted/insured for business use...commute to, and for social domestic pleasure

Printer ink cartridges, I need to buy for work useage

What else can I document for work, I dont habe a clue!

OP posts:
HateMyRubbishBoss · 26/01/2024 17:48

Logistria · 26/01/2024 17:43

A proportion of mortgage interest, perhaps. But not the capital repayment.

And there are potential consequences.

https://www.litrg.org.uk/tax-guides/self-employment/what-business-expenses-are-allowable#toc-i-work-from-home-what-expenses-can-i-claim-

Yes for sure

same for council tax, bills etc. All depends on the rooms in your house

my tax guy has a calculator he’s using for these stuff, i don’t do myself for sure

my point is that certain accountants are way more knowledgeable than others

Tryingtokeepgoing · 26/01/2024 17:48

Sonora25 · 26/01/2024 17:10

You are not using your car for business unless you are a delivery driver or taxi!! You don’t need different insurance.

That's dangerously incorrect advice I'm afraid. Using your car for business purposes (travelling to events, meetings etc) is very different to the hire and reward cover a taxi or delivery driver needs. But also differnt to social, domestic and commuting cover. Most organised businesses ask for proof of the correct cover for business use to be on file before allowing an expense claim

Logistria · 26/01/2024 17:48

Kazzyhoward · 26/01/2024 17:40

Not really. £10-£20 for a drink and snack will be ignored by a tax inspector under the triviality rules on the grounds they're just not going to waste time on trivial amounts and it's just a matter of basic courtesy to have a drink during a meeting. Your half would probably be allowed as "subsistence" anyway if it was a meeting away from your normal workplace, so it's only the half for the client that "could" be challenged by a particularly pedantic tax inspector! (Of which there are very few).

However, £50-£100 for a "proper" lunch and drinks is definitely not allowable as it's entertainment. Like a lot of things with tax, context and amounts are important. Tax inspectors will concentrate on bigger things!

That's why having an accountant is important as they know the reality rather than just the theory. They have experience of the type of thing that tax inspectors challenge and the types of thing that a tax inspector will ignore on the grounds of triviality.

What "triviality rules"?

Please show me which part of tax law says you get a tax deduction for entertaining when you bought the drink as "basic courtesy".

There is a word for deliberately underpaying tax by claiming deductions to which you are not entitled.

If the op takes deduction for a thousand pounds worth of £10-20 here and there entertaining, that's not trivial anyway.

Logistria · 26/01/2024 17:50

Good god, please log off Mumsnet and go and find yourself a qualified accountant.

allmycats · 26/01/2024 18:33

Just make an appointment with a qualified accountant. The cost of this is an allowable expense. Such a lot of misinformation posted on here.

Comfysock · 26/01/2024 19:13

Gosh I litetally will be doing a self assessement 5-6April (I started 1 day a week freelance in Dec) I litetally wont have earnt that much. So didnt ferl the need for an accountant but now Im wondering if I should....although that will probably cost me a big chuck of what Im going to earn!

OP posts:
Eviebeans · 26/01/2024 19:46

The cost of the accountant can be claimed as an expense and is well worth it at the start for the peace of mind that it’s correct

Comfysock · 26/01/2024 23:55

Ooo I didnt know that, Im def doing it then!

OP posts:
DelilahBucket · 30/01/2024 21:46

Sonora25 · 26/01/2024 17:10

You are not using your car for business unless you are a delivery driver or taxi!! You don’t need different insurance.

This is some of the worst advice I have ever seen given on here. There are different levels of business insurance, one is where you are driving in order to earn a profit i.e. delivering. The other is commuting from destination to destination. Even people who are employed and travel to different places of work need business insurance, and you OP, definitely do. My insurance was actually cheaper with business cover added on. It really isn't worth not being covered. You can't claim car insurance as an expense though unless your vehicle is solely for business use, and generally it will need signage on it. You can claim 45p per mile though.

Comfysock · 30/01/2024 23:29

Thanks everyone for this year Im going to get an accountant to do it

OP posts:
BitOutOfPractice · 30/01/2024 23:31

My first bit of advice to anyone starting out: get an accountant. They will save you more than you pay them.

and yes, get your car insured for business!

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