So you’ve just entered the world of self-employment with your fantastic business idea and you’re making money doing what you do best. But the world of self-employment is completely new to you and you’re looking to find out more about self-employed business expenses and exactly what you can claim for. Enter A1 Professional Accounting and our latest blog.
Being self-employed costs money. Regardless of what you do in your business, there will be equipment, software, or stock that you buy on a monthly basis in order to fulfil your obligations to customers. Many people just starting out as a sole-trader or self-employed business owner often don’t even take business expenses into consideration and end up paying more tax than they really need too.
You can claim for allowable expenses. Allowable expenses are anything that costs you money to run your business. These types of items are commonly purchased on a monthly basis for the on-going activities that you fulfil. Allowable expenses include travel expenses, staff costs, stock, office equipment and stationery, marketing costs, work uniforms purchased, computer software, phone bills, and fuel costs.
So now you know what types of items you can claim as allowable business expenses, you need to know exactly how to go about claiming the expenses. Firstly, it’s advisable to have a trusted and reliable accountant – just like A1 Professional Accounting – who can provide on-going financial support and bookkeeping services which means you’ll be in expert hands and it will also allow you to focus on what you do best. You will need to submit your financial records once per year and all receipts of business expenses will have to be collected in order to legitimately show proof. Of course, collecting receipts and recording business expenses can be made much easier by using software such as Xero.
There are a lot of business expenses that you can claim for but there are a few notable exclusions that you should be made fully aware of. Types of non-deductible expenses include legal fees and expenses, fines, penalties, and more. If you are still unsure about the difference between deductible expenses, non-deductible expenses, and exactly what you can claim for, please get in touch and we’ll be more than happy to help.
A1 Professional Accounting can help by ensuring that you are claiming all eligible business expenses and that you are not paying more than you are legally obliged too. We do this by providing dedicated bookkeeping services and meeting all your tax and audit needs for you. Therefore, you can forget about the stress of submission by just supplying us with all the information that we require.