What can I claim against tax?
Ken Abram – a business and financial coach for over 20 years, and a specialist in helping start-ups with tax – gives us the inside track.
So what expenses can I claim tax back on?
Basically, anything that’s used solely and exclusively for business purposes. That could be a computer, a car, office equipment including flipcharts, stationery, business cards… for example, I have a television in my office that I use for checking stock movements on Bloomberg. I claim for that and the Bloomberg subscription.
The ‘solely for business use’ point is important. To avoid any ambiguity, have two computers – an old one for personal use and a new one just for the business. The same applies to cars. My advice would be to agree with HM Revenue and Customs what you intend to use for home and business.
If I work from home, can I claim tax back on the bills and mortgage?
Say you use one room out of five, then you can offset a fifth of your expenditure against tax. You can only claim on the interest on your mortgage. Again, it’s a good idea to get this pre-approved by HM Revenue and Customs.
Anything else?
It’s really anything that applies solely to the running of your business. Some examples: if you have a manual job, you can claim for things like overalls, tools, diagnostic equipment. A massage therapist could claim for oils. Further professional training’s included too, and not just the course fee, but travel, accommodation and meals away from home.
Finally – any recommendations for further advice?
I’d recommend joining the Federation of Small Businesses. For £120 a year you get free legal protection for employer liability and tax investigation, and many other benefits. It’s well worth it.
