What expenses can I claim in my tax return?

]Being self-employed and working from home, a whole lot of opportunities arise to claim legitimate costs in running a business. Specific advice must be sought, but the main categories of allowable expenses are:

  • Products purchased to retail, demonstrate and to be used as samples.
  • Advertising, including purchasing company information packs, and other promotional material
  • Motor and travel costs for business journeys including an allowance for owning a vehicle
  • Business telephone, fax and internet costs
  • Stationery, printing and postage
  • A proportion of home expenses including council tax and heat and light
  • Bank interest and other finance charges in connection with the business
  • Purchase of computers and other office equipment or furniture
  • Any costs incurred in attending corporate or direct seller meetings or trainings, both home and overseas
  • Professional fees for the business including accountancy
  • Commission or wages paid to help in running the business

In other words, there are many allowable costs to claim against business income and in the first year or so as a customer base is being established and recruiting is underway, these expenses can often lead to a refund of tax paid in other areas, PAYE on a full time job for example, providing money to reinvest in the business. Keeping bills and receipts for all costs is therefore so important!

Source: DSL Accounting

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