Tax & Admin

What Tax Deductions Can The Self Employed Claim?

Business Advice | 8 March 2023 | 1 year ago

If you are thinking about becoming self employed, you need to consider the tax requirements that come with doing so. As a self employed worker, you need to manage your own taxes, and this involves submitting a self assessment tax return at the end of every tax year. One aspect of this relates to tax deductions, of which there are many. If you are self employed, you can boost your income by claiming various business running costs, which reduces the amount of income tax that you need to pay. There are a range of tax deductions for self employed workers in the UK, some of which we have detailed below.

How to Claim Tax Deductions?

There are various business running costs that come with being self employed, and many of these can be deducted from your taxable profit. This is done as part of your self assessment tax return at the end of the year. Not all expenses are deductible, and there are strict rules about how much can be deducted if you use something for both business and personal reasons.

Workplace

If you are self employed, you can claim a whole host of workplace expenses. This includes the costs associated with running your business premises, office costs, equipment and tools. Stationery, rent, power, phone bills, printing, computer software and postage are all included in this.

Transport

If part of your self employed work requires you to travel, you can claim tax deductions for your transport. This includes the cost of commercial vehicles, fuel, parking, public transport costs, hotel rooms, breakdown cover, business trips and more. You are not allowed to include the cost of travelling between home and work, fines or travel costs that aren’t related to your business.

Legal and Professional Costs

The cost of any legal and professional services are also tax deductible. This includes solicitors and accountants, should you need them.

Stock and Materials

Stock and raw materials that you require for work can also be included in your list of tax deductible costs. This includes goods for resale, raw materials and the costs associated with producing goods. 

Marketing Costs

As a self employed worker, you might have to market and advertise your services, and this is tax deductible. This includes website costs, free samples, advertising in newspapers, email marketing and directories. You cannot include any costs arising from entertaining potential clients and customers.

Clothing

If your self employed work requires you to wear specific clothing, you can add this as a tax deductible expense. This includes protective clothing and uniforms.

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