Filing a tax return is frequently cited as the worst aspect of being self employed. And there’s little wonder. With complicated rules on what you must declare, how you must submit your return and when, combined with the threat of penalties for late and incorrect filing, these findings are no surprise.
Then there’s the whole issue of which expenses you can actually claim. Allowable expenses can be claimed when you submit your tax return, reducing your profit and the resulting amount of tax payable. But how do you know which are allowable? Can you claim for uniform or the costs entertaining clients or the costs of running your business from home, for example? What about travel expenses and costs you incur before you even start working for yourself?
In this episode, we talk to Mike Parkes, technical director at Oldham-based GoSimpleTax about allowable expenses for sole traders, which can be claimed, common misconceptions and schemes that can simplify the claim process.
Show notes
Find links to content related to the topics covered in this episode below.
Registering for self assessment
Allowable expenses
- HMRC guidance: Expenses if you’re self employed
- Allowable expenses for small business and sole traders
- Motor expenses for the self employed
- Allowable expenses for homeworkers FAQs
- Expenses for hairdressers and barbers
Accounting records
Simplifying your tax return
- HMRC guidance: Simplified expenses if you’re self employed
- HMRC guidance: Cash basis
- Using simplified expenses
- Income tax schemes for small businesses
- Q&A: Mileage allowance rates
Further help and support
- HMRC help and support for the self employed
- HMRC video | Expenses if you’re self employed
- HMRC Self Assessment helpline: 0300 200 3310
About Mike Parkes
Mike is technical director at Oldham-based GoSimpleTax. He has worked for HMRC and in practice for most of his 30-year career and has a detailed understanding of personal and small business taxation.
GoSimpleTax is the digital solution for the self-employed, freelancers and anyone with income outside of PAYE to record income, expenses, and file self assessment tax returns. It gives hints on savings along the way. GoSimpleTax does all the calculations saving ££s on accountancy fees. Take control of your finances today and always know your tax owed. Grab your 25% discount via www.gosimpletax.com/money
What next?
To make sure you don’t miss an episode:
- Find “Start Your Own Business” on your podcast app of choice and hit the subscribe button – we recommend Apple Podcasts and Spotify
- Subscribe to our newsletter
To get tips, support, and inspiration from other small business owners:
- Join our thriving Facebook group the Donut Small Business Collective
