Some businesses do not understand that some of their everyday expenses can be written off for tax purposes! If you’re not aware of these often-forgotten deductions, you can easily reduce your tax bill while claiming everything to which you are entitled.
Professional Development and Training
Spending money on your skills is actually a business expense. You can fully deduct the cost of professional courses, industry conferences and certification programmes if they improve your business skills. That could be online courses, webinars or even books on your field. Consider the travel costs of attending training events – accommodation, meals and transport are all valid expenses.
This also includes subscriptions to professional journals, industry publications and business software. The design software or project management tool you use every day that costs a pretty penny? Completely deductible.
Beyond the Obvious Home Office Expenses
If you are a business owner, then this is the place to start…but many people don’t know they can claim home office space… and that gets missed. You can claim a percentage of things like council tax, insurance, mortgage interest and utility bills if you work at home. Even home security systems that keep your business equipment secure are eligible.
Expenses such as cleaning costs for your home office area, decorating expenses and repairs to the space used for business purposes are all deductible. Track what percentage of your home is used strictly for business
Business Networking and Entertainment
This includes things like business lunches, taking clients to events and entertaining potential customers. So the expense requirement revolves around whether the purpose of a given cost can be directly attributed to some form of business objective.
You may include membership fees for professional associations, business networking groups and even some social clubs that are used mainly on behalf of business. For advice from Accountants Bristol, contact https://chippendaleandclark.com/accountants-near-me/bristol
Technology and Equipment Surprises
Claim the business proportion if you use your smartphone to make calls and email for work. Your mobile phone bill is allowable if part of its charge is devoted toward making calls on behalf of a company. The same is true of broadband charges.
Travel and Vehicle Costs
Client visits are only the tip of business mileage claims. Claim for travel to networking events, training courses and business banking as well — things like buying stationery are included too. If you keep a report card on your mileage for every visit to the dealership, these are calculated.
All parking fees, tolls and congestion charges related to business travel are claimable.
The Bottom Line
Deductions are maximised through careful records and the ‘business purpose test’. Every pound spent should have a valid business purpose and documentation. If in doubt, speak to your accountant – they will make sure you are claiming for everything possible whilst remaining within HMRC guidelines.
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