What types of expenses are there?
Capital - This is the cost of buying, creating or improving a business asset, used to increase profit. The cost of buying a van for your business would be capital expenditure. Other examples include buying machinery, technology and fixtures.
Business – You can get tax relief for your business costs as long as it's not capital expenditure or specifically non-allowable. Non-allowable expenses include legal costs of buying property, entertaining clients and payments for non-business costs.
Personal - Private or personal expenditure is what you spend in your day-to-day life, such as wages, costs of goods or services for private use and loan repayments. Private expenditure is non-allowable
What am I allowed to claim as self-employed?
You can claim a business expense as long as it:
- Isn’t capital expenditure
- Isn’t non-allowable
- Is wholly and exclusively for business
Here is a list of common expenses:
- Costs of stock
- Repairs to business equipment
- Travel expenses but not home to office
- Professional fees
- Finance costs
- Payroll costs for staff
- Save money on your taxes
- Simplify dealing with HMRC
- Make this year’s tax return simple
Other Keywords: sole trader; freelancer; agency; business; sub-contractor; private; umbrella; trade; SE