Beginners Guide to Claiming Business Expenses (Self Employed), by Michelle Eames - Helpbox UK on YouTube. 11 min 6 s.
- Video length
- 11 min 6 s
- Time to do it
- 30 minutes
- Difficulty
- Easy
- Steps
- 8
What you need
Steps
Open a separate bank account or card for business spending. It makes every business cost easy to spot when you sit down to do your return.
Apply the main test before you claim anything. The cost must be wholly and exclusively for your business. If it is mainly personal, leave it out.
List your regular costs. These include office supplies, software subscriptions, business insurance, accountancy fees, advertising, and business calls and internet.
Work out a fair business share of your home bills if you work from home, such as a portion of heating, electricity and broadband based on rooms used or hours worked.
Follow the special rules. Clothing only counts if it is a uniform or protective wear, and client entertaining is not an allowable expense.
Choose between claiming actual running costs for your vehicle or simplified mileage rates, which are 45p per mile for the first 10,000 miles and 25p after that.
Keep every receipt and invoice as you go. Photograph or scan it and note the date, supplier, amount and what it was for.
Add up your allowable expenses for the tax year and enter the total on your Self Assessment return. Check the figures before you submit.
Tips and common mistakes
Snap receipts on your phone as soon as you get them, because faded paper is hard to read months later.
Never claim the full cost of something you also use privately, such as a phone or laptop. Claim the business percentage instead.
Keep your records for at least five years after the 31 January submission deadline in case HMRC asks questions.
Check the current HMRC mileage rates and expense rules each year, as they can change.
Questions
Can I claim my phone and internet bill?
Yes, but only the business share. Work out a realistic percentage of the bill and claim that part, not the whole amount.
Do I need a receipt for every expense?
Keep proof for everything you claim. A bank statement plus a photo of the receipt is the safest record if HMRC checks.
Can I claim lunch with a client?
Client entertaining is not an allowable expense in the UK, so you cannot claim it. Everyday business costs like supplies and software are fine.
This guide was drafted from the video's details and general task knowledge. It has not been checked against the full video. Check the video and relevant product instructions before following a procedure. Report a correction.
