12 Self Assessment expenses you didn’t know you could claim
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- เผยแพร่เมื่อ 20 พ.ค. 2024
- Worried you are paying too much Income Tax through your Self Assessment Tax Return? Business people such as sole traders, company directors, and shareholders must report their income in a tax return, and this can vary dramatically depending on how they report tax-deductible business expenses.
In this episode of Whiteboard Thursday, Nicholas runs through 12 Self Assessment expenses you are probably not claiming - providing you with the opportunity to legitimately reduce your Income Tax bill.
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#SelfAssessment #Expenses
all 12 expenses:
1 office supplies eg
2 donations to charity eg gift aid
3 mileage costs eg vehicle insurance meals on overnight business trips
4 legal and financial costs
5 unpaid invoices- bad debts
6 marketing costs
7 clothes - related to work
8 staff costs - agency fees, not nanny
9 - subscriptions to trade professionals or academic journals not gym memberships
10 mortgages and utilities plus proportion of gas, electric ⚡️ - apportion the cost of the utility bills
11 council tax
12 flat rate simplified expenses 👀
Keep record of Costs
You are a star shining brighter than any other
Thanks for sharing Shirley! Great to see the 12 expenses written out in a list. Have you seen any of our other videos?
Forget about the 12 days of Christmas 🎄 it’s all about the 12 self assessment expenses I didn’t know I could claim 😍
Tis the season to by jolly, James!
can you put that down as a loss really?
This is the most clear and detailed simplified self expenses, dude you are a star thanks👏🏿👍🏿
We're pleased that you found it useful! Are there any other topics that you would like us to touch on?
Excellent, clear, concise and informative. I do a self assessment return for the voluntary (paid) post in which I work as an Associate Hospital Manager. Even this 79 year old found this easy to understand and digest. Let's hope this is so when I fill out my next self assessment return. I have been missing out for the past 2 years whilst working from home. Thank you.
Thank you so much for taking the time to comment! That's so brilliant to read. Is there anything you would like us to cover in a future video?
Really well presented video but the thing i am not quite understanding is what it is appropriate/permissable to claim on sef assessment versus what is simply charged direct to the company accounts (so profits reduced before it even gets to personal tax bill. So, on home working for example, i get that would need to claim on self assessment as just claiming a share of personal costs. But i was a bit surprised to see reference in video to claiming staff costs. Surely that would simple be charged (appropriately) direct to company and charging as much direct to the company as possible is simpler?
Keep up the great work.
Mike
Always great advice, specially in this difficult times we are 👏👏 I can’t wait for next Thursday!
Thanks Priscila - every penny counts - even more so when income might be lower due to Covid-19. We think you'll enjoy next Thursday's video. Remember to subscribe to receive notifications when our new videos are released.
Thank you for yet another informative video. Really useful point about being able to claim a proportion of your council tax bill when working from home. I wasn't aware of this before.
Thanks Rakhee. Glad we might be able to save you some money whilst your working from home. Watch this space for more videos which might help those who are working from home!
I also had no idea! Wonderful
1 office supplies
2 donations to charity = 100% tax free
3 mileage costs
4 legal and professional financial Costs
5 unpaid invoices/(bad debts?)
6 marketing costs not inc entertaining clients
7 work related clothing
8
9 subscriptions to trade or academic
10 your mortgage 💸 and utilities
11
12
@@deev7598 Glad the video was helpful Dee! What else would you like to see covered?
Great tips. Particularly the advice about staff costs. Cheers!
Thanks Nicholas. Yes, we think this an often misunderstood subject and one that people can make a good saving on.
Thank you again Nicholas, you are always great!
Many thanks Agostino - glad you are finding our videos helpful.
this is the most effective, CLEAR, and informative video i've ever seen. surprising that i have worked for 5 years as a self- employed and my accountant never mentioned all of these to me. i just have one question though, can i claim the social media such as Facebook and Etsy subscriptions and ads fees under the cost of marketing material?
Thanks for your kind comments Damra. In general terms, social media subscriptions to Facebook and Etsy would not constitute allowable expenses, unfortunately. What does your business do for a living?
well done. clear and easy to follow.useful thanks
Hi Keith, thank you for your kind feedback. We are glad that you have found this useful. Please feel free to check out our other video's on our channel! Is there anything you would like us to cover?
VERY WELL EXPLAINED - THANK YOU
You are welcome!
Very helpful as always! Thanks for the great content
Thank you for your kind words, Stefan. Glad you found this video useful.
Great video thanks! I’m a self employed decorator. I would normally get an accountant, but I’m going to try do my own tax return this time. Very informative! Wish me luck with all the fuel and tool receipts! 😮
You can do it! Best of luck!
Fantastic advice Nicholas, thanks so much.
Glad you found this information useful, James.
Hi Nicholas, thank you so much. I learn a lot. I have two questions. Could I claim start-up expenses, ie any business expenses before I have incomes. Second, I have a bit confused on travel expenses. Can I claim mileage cost from home to the place I provide the service (only one place)? TY
Hi Ann,
Apologies for the delay in getting back to you. We're so pleased to hear that you found the video useful. Expenses can be such a confusing topic.
You can claim startup expenses that you incurred before you started trading, as long as those costs were 'wholly and exclusively' for the purpose of running your new business. However, since you are claiming these expenses from your business, you will need to wait until it generates income before you can physically reimburse yourself with the money. You will then report these startup expenses on your first Self Assessment tax return - so remember to keep all of your receipts!
Mileage costs - from what you've said, it doesn't sound like you will be eligible to claim mileage costs for travel between your home and your regular place of business. This is classed as commuting rather than business travel, unfortunately.
We hope these answers have helped. Please get back in touch if we can be of any further assistance.
Great video for new biz, I wish there was a book with all of this advices!
Thanks for your comment, Venanzus. We offer a free e-book: The Ultimate Guide to Starting Your Business, with every company formation package - why not check out our website?
Very clear presentation. Thank you.
Thank you for your kind words, Andrew. Have you checked out any of our other videos?
Brilliant thorough video! Thank you.
We're glad you found our video comprehensive, Ritchie. Is there anything you didn't know about Self Assessment expenses before you watched this video?
Another great way to help small businesses, thanks Nicholas
Thank you for your kind words, Tommaso! If there are any other topics you would like us to make a video about which you think would help small businesses, just leave a comment and we'll see what we can do!
This was super helpful! I do have a question I hope you can answer:
So I rent with my partner, I’m self employed while they’re a full time employee. We split all the bills 50:50.
Am I therefore able to only claim on what I’ve paid? Rather than the total cost? So let’s say my rent is £1000 a month, 3 room flat. 1 room is an office. So 33% of the flat can be expensed. Do I expense 33% of the £1000 (full monthly cost) or £500 (how much I paid)?
Thank you for your question! You are only able to claim on the amount that you have paid. Does this help?
Great video. I’ve got a doubt if I may: I work in 3 different places but I only to one per day, can I claim the mileages for that as I don’t have just one place of work! Thank you.
Assuming, you are self-employed, I believe you can
What if you use cash basis and normally used the simplified option for car cost (i.e. car mileage) for your car... but with COVID, the car has not been used at all, as we were in local lockdown for the whole year where I live. Does that mean I cannot deduct any car-related costs? Because of the 0 miles driven (OK, it may have been 0.5 mile to the garage where it was MOT'd)? I still had to pay for MOT, road tax, insurance and breakdown cover (and will have to pay for a new battery too when we start driving again).
My understanding is that we normally pick one method for motoring expenses and we keep the same for that car, but given the unprecedented situation with lockdowns, are HMRC willing to be a bit more flexible on this?
Thanks for the comment! Because this is such a specific case we suggest going straight to HMRC for guidance. We hope you get a clear answer.
Thank you.. Very good information.
Only one question I have a fully Electric Van that I bought for my business. I hear you can depreciate the full purchase price as an expense in the first year? Is that correct? How do you note it in your self employed return? ( I started in May 2020)
thank you
A fully electric van (i.e. one that is solely propelled by electric power) which was bought prior to 1st April 2021 will qualify for a 100% first-year allowance. This should be claimed in the capital allowances section of your Self Assessment Tax Return. Is there anything else we can help you with today?
Great video, thank you! How does a non resident, owner of an LLP, claim business expenses, while all (or most of) the expenses are made in the home country? Will this apply the same?
Thank you for your kind enquiry. We would recommend you contact an accountant if you live abroad. Which country do you live in?
These videos are really good and simple to understand 👍🏻
Thanks for your kind words, Dale. If there are any other topics you'd like us to make a video about, just leave a comment!
@@1stformations Thx, I will for sure.
hi there. thank you for making this simple and helping me clear a few things. In the last few months I added farm pest control to my services. been searching for hours with no joy. So can I claim the cost of the shotgun/rifle and ammo that is used for work use and not personal. I know this is a strange one but I'm really stuck.
Thanks for the question. Because this is such a specific case, we urge you to ask HMRC directly. Please do let us know if you have any further questions, and hopefully we can help!
This is great - I'm certain there are many people out there who just don't realise how they can lower their tax bill
Thanks John. We agree - these are often asked questions, and you would be amazed at the number of people who do not know about these tips.
Brilliant. Thanks.
You are most welcome lovon! Is there anything that surprised you on the list?
Thank you so much for all this information, I've watched a lot of your videos and they're really helpful. I have a question, though. I'm a sole trader and bought a bike to go to work. Can I claim that as a business expense? I'm looking everywhere but all I can find is about big vehicles.
Thanks for your question. To enable us to answer your question, can you let us know if you use your bicycle just to commute to a regular place of work, or whether you cycle to irregular places of work (i.e. different places each day)?
@@1stformations Thanks for answering me. I use it to commute to a regular place of work 90% of the time. Occasionally for non-work related things.
@@shoroenrioplatense Thanks for your response. We would recommend claiming the cost of your bicycle as a capital allowance. Information relating to capital allowances should be inputted in sections 50 to 59 of your Self Assessment return. Are you planning to file your own Self Assessment return?
This is the upmost useful video I have seen so far regarding tax
We're glad you liked it Leandro. Have you checked out any of our other videos?
Hey Nic, Great video.
A question on the flat rate, How and where can you find out how much the flat rate will be?
Thanks for your question Shaun - you can use this online tool which should show you how much the flat rate should be for your circumstances: www.gov.uk/simplified-expenses-checker
Are you self employed?
Can you claim Business Expenses and Capital Allowences from a previous year?
For example;
I want to claim Business Expenses and Capital Allowences (up to 3 years prior) in the 22/23 tax year..
So in my 20/21 & 21/22 self-assesement I do not have to input Expenses or Allowences purchased in that year? As if there were non?
Context;
New small business not earning enough to pay tax but have spent good money on equipment and resources to make business run.
I am now full-time employed and will earn over the tax threshold but continue the self-employed business. I"m wondering if and how I can claim on the previous years self-employed costs.
Thanks for your help!
Thanks for your question Jordan.
You have 4 years to make a self assessment claim for a previous tax year; however, you cannot bundle together expenses and capital expenses into one tax year if they do not relate to that specific tax year - that is, if the expenditure took place prior to the tax year.
Does this make sense?
I have a question when the transferee is going to pay in installments, when does form J30 is filled? when the transferee fully paid?
Hi! We're afraid we can't comment on specific cases, but we would normally expect the Stock Transfer Form to be completed at the time that the shares are agreed to be transferred across. In this scenario we would advise seeking professional assistance.
Very interesting!! I'll definitely be setting a company up with you soon :D
We're glad you found our video interesting, Polina. Remember - you can always give us a call on 020 3897 2233 24/7, if you need assistance setting up your company.
Hi Nicholas, really good video. can you explain bit about meal allowance for over 8 hours work daily please. how much we allow to claim?
Thanks for your mesage. If you are self employed, you are allowed to include your food and drink bills as allowable expenses whenfiling your Self Assessment tax return, provided that the expense occurs whilst you are on a business trip. You also camn only travel to the place or location occasionally and not on a regular basis as part of your business to be able to claim.
The HMRC system has a benchmark scale for these type of expenses, which is listed below:
- Breakfast rates: A standard rate of £5 can be paid if you are leaving the house earlier than usual and before 6 a.m.
- One meal rate (five hour rate) - A standard rate of £5 can be paid if you are away from home or your normal place of work for more than 5 hours.
- Two meal rate (10 hour rate) - A standard rate of £10 can be paid if you are away from home or your normal place of work for a period of at least 10 hours.
- Late evening meal rate (irregular late finishers) - A rate up to £15 can be paid if you have to work later than your usual working hours.
Do you qualify for any of these?
Thank you for this great information. Im a newly set up sole trader tradesman and still have lots to learn with SA. This has been very helpful 👍🏼
We are glad you have found this video helpful! Have you ever considered turning your business into a limited company?
@@1stformations i did consider it but havent yet. Wasnt sure if it was a good idea to become Ltd straight away. Perhaps i should do some more research
@@TheChugzee No problem at all, please feel free to check out our blog pages for more information: www.1stformations.co.uk/blog/category/all-about-companies/ Do you have any other queries?
@@1stformations i will check out your other videos. Might learn something new. So far i put back 20% of every income even tho i have lots of experience in a month. Should habe loads more in there for when i pay my tax bill.
@@TheChugzee Great news! It sounds like you have a structured plan that you are sticking to which is working well. Please keep us updated on this! In the meantime, do you have any other questions that you would like to raise with Nicholas?
Hi Nicholas, love your presentation with excellent tips, thank you. Just trying to get my head around everything before I fill out my first self assessment! Just wondering what happens as I am already employed part time by the NHS and have tax and NI contributions deducted at source and a tax code. Only I have now purchased a holiday cabin and started letting it in July. Is it just in relation to this letting income and expenses associated that I fill out the self assessment? And what happens given I shall only have had 6 months up to 31 Jan of running it? as, although it looks to be easily on track to qualify for a FHL I have not had long enough to get the105 days of letting yet (also the site closes too for the whole of November). Also with the combined income of my non-self-emplyed salary and the income being generated from the cabin will I be stung and / or will my tax code change? (please only reply when you can given it is later on Christmas Eve...) Also can the capital outlay with legal fees etc be claimed against? Finally I paid approx £2200 for a new decking but I was not given a receipt for this - what shall I do? Thanks.
Thanks for your kind questions Gail.
You only need to declare your self employed income and expenses on your self assessment; HMRC will already have a record of your PAYE information. It should be noted that your tax code may change if you exceed certain limits on your PAYE and self employed income combined.
Capital outlay can be claimed against in certain circumstances.
With regards to the receipt - do you have evidence of payment in the form of emails etc?
@@1stformations Thanks very much for your detailed reply which is very helpful to me. For several obvious reasons I plan to phase out of my NHS job soon! I have a text message about the decking payment - I wonder if that will do? Or I'll try asking for a receipt. I'll google about which capital outlays can be claimed for given it is sometimes allowed, though I'm not holding my breath. My last question is about the submission date - do I have to submit anything by the end of 31 Jan 2022 or, as my first tax year will not be yet completed do I wait till some other deadline after 5th April? Thanks again.
@@gailedgley7229 Thanks for your reply Gail.
The decking text message should be sufficient for HMRC.
With regards the date you should submit your first Self Assessment tax return, based on the information provided, this should be by 31st January 2022.
Where is your new property based?
@@1stformations Thanks so much Nicholas for your advice and thoughts on the matter. Much appreciated. That is good about the text message hopefully being sufficient (plus I have before and after pictures too - the decking was rotten and dangerous so not an improvement!). I have already compiled various spread sheets, inputting income + expenses all invoices and receipts (bar the aforementioned) ready to put onto the HMRC Self Assessment form so I feel happy about this. The cabin is in Southern Snowdonia, Gwynedd. It has glorious views to boot and is proving very popular! I am planning to do the submission all myself being as I am purely a sole trader with one holiday let which seems quite straight forward, unless I am persuaded of unequivocal advantages to employing a suitable accountant or financial advisor! ... Thanks again
@@gailedgley7229 Snowdonia - lovely! I guess not many tourists at present due to winter and Covid?
I work self employed, but use my bedroom as my workplace/office on average between 9am-6pm. We only use the bedroom realistically between 10pm-7am. How would you advise to proportion this?
Hi - we would recommend 40% of the % the one room takes up in the house with regards to rent or mortgage. How many rooms in the house (excluding bathrooms)?
I’m learning so much from these videos
That's great to read. Do you have a limited company?
Love the video but love that tartan bow tie even more laddie! Maybe a kilt next week?!
Your wish is our command, Annalise! Bagpipes the week after...
This is brilliant! Thanks mate!
We are so pleased you found this video useful Idris. Are you currently a sole trader or do you have your own limited company? Also, don't forget to check out our blog on some of the mistakes people make when it come to self-assessment which may help you! www.1stformations.co.uk/blog/the-10-biggest-self-assessment-mistakes/
@@1stformations just started up limited company. so learning the ropes on taxes. this was very helpful.
@@Desiklown That's great Idris! What is it that your company is doing? Be sure to like, comment, and subscribe as we release videos every Thursday which could really benefit you and your new company.
Very useful for landlords who live abroad and have income from property in the UK. Thank you.
We're really glad you found it insightful! Were there any expenses you didn't know you could claim?
Hi. I would like to know if I can claim expenses if the items in question have been bought from my wife’s bank account or there is a bill on her name.
Thanks
Hi Tiberio, thank you for your question! Unfortunately, the answer is no, you would not be able to do this I am afraid. Please do let us know if have any other questions.
As a delivery driver I use my car for business and personal use therefore I have the usual car insurance I need in order to drive a car and I have my courier insurance separate. Do I caim back just the courier insurance or can I claim back both ? Help would be appreciated thans.
Thanks for your question Clint. You can claim both car insurance and courier insurance using self assessment, as long as you are not using the flat rate mileage method. Does that help?
Some useful info here. Great stuff!
We're pleased you found this video helpful. If there are any other areas of business advice you would like us to make a video on, just leave a comment!
Thanks for this information
Thank you for your kind comment we are glad that you found this useful! Is there anything in particular that you would like us to cover next?
Very useful indeed!
We're glad you found this video helpful, Pras. If you have any other topics you would like us to cover in a video, just let us know and we'll see what we can do!
Ver helpful!
Question:
You said Claiming tax back on bills whilst working at home may incur charges when the house is sold ie. capital Gains tax.
So is this the case when claiming tax back through a portion of your ‘Council tax’ & ‘flat rate allowance’?
And can Directors of a limited company claim ‘flat rate allowance’? Through self assessments or is that only just for sole trader/partnerships?
Hi Jake, thank you for your feedback! Please be advised that Directors of a limited company are technically also employees of a company. All employees of a company are able charges when working from home.
With regards to the first question - yes this also applies! Is there anything else we can assist you with today?
@@1stformations ah sorry I didn’t understand you said “All Employees of a company are able charges when working from home?”
@@1stformations 💡 ah as a director I can charge my company for my business bills and then my company can claim tax back for this. I think that’s what you’re saying?
@@JakeJon Thank you for your reply. Please note, Self Assessment allows you to claim tax relief against the amount of personal tax you owe (i.e. Income Tax and National Insurance contributions). This video describes how to claim tax relief against personal tax using the methods described. Does this answer your question?
Very useful video - thank you. Can I please ask - should I do my own Self Assessment tax return or pay for an accoutnant to do this?
Glad you found our video helpful, Graeme. Interesting question - in truth, an accountant is unnecessary when filling in a self assessment tax return. We recommend you use tax software which adds up all of your income and expenses over the year; just ensure you are keeping your inputs up to date and you can't go wrong. When you're ready to fill in your self assessment tax return, this software will prove of great assistance. It should be noted that you can ask an accountant to assist you with a self assessment tax return and they can reconcile the information required to complete it if necessary; however, they will still require your assistance and records to do so.
If you have any other questions regarding self assessment, just leave a comment and we'll be happy to assist!
@@1stformations Thank you for your excellent response. it is very much appreciated.
Anytime Graeme - we are always here to help!
If a non resident forms a UK company, and that company make no profit, pays no dividends .... according to what is said at one minute into the video ALL directors must file a Self Ass. return .... that is the first time I heard that... why would HMRC want you to file a zero return?
Hi Phyllis, thank you for your question. A director whose only income is taxed under PAYE, or has no taxable income at all, and who has not received a notice to file a tax return, is not required to report to HMRC or register for Self Assessment. Is there anything else we can help you with?
Can you claim one off accounting fee instead of all the small bills connected to the home office costs?
Thank you for your question, we hope that you are enjoying the channel.
Many accountancy fees - such as the fees for filing your tax return - can be claimed. Does that help you?
This was very beneficial and very informative.I have lots of videos to watch from you guys. I have shared this video to one of my colleagues, which I'm sure he will get surprised . Thanks a million
We're glad you found this video interesting Mona. Have you checked out any of our other videos?
@@1stformations oh yes definitely. I have plans to watch more with my group this Friday. Thx a million
@@monay.tahafaridams1342 Great. Are you planning to watch any videos in particular?
@@1stformations I find your videos very informative and are actually saving me time to explain everything to my partner, as he has registered recently as a self employed. it's a bit confusing for him, so it's a good idea to start watching your videos starting from basics and the fundamental issues, differences, and responsibilities between limited company and sole trader. Its going to be fruitful weekend for both of us. I will address any questions or inquiries if there are in each video comments.
@@monay.tahafaridams1342 Thanks Mona. What do you and your partner do for a living?
Is this only applicable to people with their own business or an full time employee like me with a company can also fill the self assessment and claim back some expenses?
Thanks for your question. If all of your income was paid via PAYE and you were earning under £150,000 per year via this method of payment, you would not be required to fill in a Self Assessment tax return, and therefore you could not claim for these expenses. However, if you also had other income, or were earning over £150,000 per year via PAYE, then you would be required to declare this income via Self Assessment tax return, and would then be eligible to claim on Self Assessment expenses.
Hi. Glad I'm working with you.
Thanks for your kind comment Muharrem. Are you currently using our services?
Very useful information.Thanks...
We're glad you found this video useful. Are you planning to file your Self Assessment tax return yourself?
Can i claim a part time course fee (mba) as it would be training ,benefiting me in my career later?
Thanks for the question. We found the following page on gov.uk which may be helpful to you: www.gov.uk/expenses-if-youre-self-employed/training-courses
We hope that's of use!
I have been self-employed offering post-construction cleaning services under CIS. During Covid I didn't have any work, so I changed nature of my business and became a commercial Skipper, however I have undergone training in order to qualify and be able to find work in the field. Can I deduct the training course or part of it on my SA return? (BTW I am on cash basis accounting).
Hi Dorota thank you for watching our video! What did you think of it? To answer your question, you cannot claim expenses on training courses that either allow you to start a new business or expand into a new area of business, which what you have described here. You can find more information about training courses expenses via the following link www.gov.uk/expenses-if-youre-self-employed/training-courses which should help!
Subscriptions question. If I subscribe to a pay as you go bike to do my uber eats delivery on. can i claim for its entirety that £40pm subscription of my self employed tax.
Hi Charlie, great question. You can claim tax relief on the £40 per month subscription as you require the equipment for work purposes and your employer is not funding it. However, how you claim is dependent on whether your bike is motorised (e.g. a motorcycle or moped) or not motorised (e.g. a bicycle). If your bike is motorised you should claim this back as a capital allowance, and if it is not motorised you should claim it back under business-related expenses. You can also claim back any repair costs you may have to undertake. What other topics would you like to see us cover?
Thanks a lot for this really informative video.
We are pleased you liked the video! Did you learn anything new?
Hi thanks for your comment.
I definitely learned something new. I didn't know I could claim a part of the council tax when working from home for example. I've just started doing motorcycle leathers repairs and just registered as self employed whilst working part time and trying to do accounting by myself at the moment.
We're so glad we could help! Is there anything you would like to see in our next Whiteboard Thursday series?
Didn't know some of these, but I do now! Great vid :)
Glad to hear! What didn't you know before?
Wait, so donations to charity should be put together with all the other expenses like office supplies? Not separately?
The officer supplies and donation to charity would both be reported to the self assessment return form, albeit in separate dedicated sections. We hope that helps!
Fantastic Advice!!
Can I ask something more specific. I already earn 25k a year from my main job as an employee. Now I have a part time self employed job, can I still claim the 12 expenses ? Also if I purchase a new phone and laptop solely for the second job can I claim the full expense?
Hi Abu. Great question! You will need to ensure you register for self-assessment to report your self-employed income. The expense allowances will be available for you to claim against. You can also claim equipment purchases if used solely for work as a full expense! I hope this helps.
@@1stformations thanks for the swift reply!! when should I register for self assessment? I only just started the second job this month.
@@abuhussain3430 Hi Abu. Please see the following link to the gov website for all information about self-assessment and registering! www.gov.uk/self-assessment-tax-returns/sending-return I hope this helps.
Thanks for the great video. As i dont have a regular place of work can i claim millage?
Thanks for your question Nathan. What type of vehicle to you use to work?
@@1stformations it's a van
@@nathanhill4634 Thanks for that Nathan. In general terms, you can claim mileage for any business trip which does not involve commuting to and from a regular permanent place of work. As you do not have a regular permanent place of work, you should be able to claim for all mileage used for business purposes.
Do you keep the receipts for payments made for fuel for your van? Or do you have an electric van?
@@1stformations receipts and track the millage. Do you have an email i can contact you on?
@@nathanhill4634 Hi Nathan - please contact us at support@1stformations.co.uk for more assistance.
How much mileage do you normally do in a year?
Thanks for the quick replies. Another question if you don't mind, please: I bought a cheap used car for business use mainly, can I claim the cost in my self-assessment return?
Hi Maxwell - you can claim capital allowances on your used car if it is used for your business. You can therefore deduct part of the value from your profits before you pay tax. For more information - see here: www.gov.uk/capital-allowances/business-cars
What % of use of the car is used for business purposes?
@@1stformations 70%
@@mrmaxwellogundu OK great. And do you drive to the same place each time, or do you normally drive to different locations for your work?
@1st Formations
Different places: its film production work so shooting is done at different locations.
However, when I'm working at the base, I commute to the base say for 3 days. The base doesn't get moved frequently because it's from the base to various shooting locations.
Am I allowed to claim 70% of the cost of the car or just claim mileage, mot, service and repairs? Thanks
@@mrmaxwellogundu We would recommend looking at this link to work this out: www.gov.uk/work-out-capital-allowances/rates-and-pools
Does this help?
Found this video very useful!
We're glad you found this video helpful, Anjali.
I am a not-resident UK Limited Company Owner. & also not a UK citizen. Do I still need to submit the Self-assessment tax return? As far I know I just have to file returns related to my company. Just to confirm.
Thanks for getting in touch! Does the income come from the UK?
@@1stformations most of them coming from out of UK such as USA, Canada & some other part of of the world.. but yes some are from UK
Like 98% of my clients from out of UK
Hi, from what you've said, you probably will need to some tax on your UK income. Take a look here for more information:
www.gov.uk/tax-foreign-income/residence#:~:text=Non%2Dresidents%20only%20pay%20tax,'domicile')%20is%20abroad.
I am still confused as to whether I can include food/drink purchases for customer meetings? E.g, coffees Thank you so so much for your clarity
Thanks for your message Dee, we hope that you are enjoying the channel. Food and drink in this context would only be an allowable expense if it formed part of your marketing expenses and the event the customers were attending was free to attend. In addition - the event would need to have a marketing element - i.e. it could not contain food and drink and nothing else, it would need to have a speaker or talk etc. Does that clarify for you?
@@1stformations thank you so much, I often met clients over a coffee/light lunch (upto £15 max) whilst we completed paperwork or the presentation
No problem Dee! Just as long as it's an event that's pre-planned and marketed beforehand. Hope we have helped.
This has got to be one of the most clearest,prompt and helpful dialogues I've been on! Thank you so much and as a teacher,I really found the board presentation effective!
@@deev7598 Glad we could help. What would you like us to see cover next?
Omg this Is so useful.
Pleased you found this video helpful, Tommaso.
Hi, how do I work out how much mileage, and utility Bill's I can claim for? I never kept any recipts of fuel but it's only 40 miles. Cheers
Thank you for your comment, Tanya.
We would recommend checking out 'simplified expenses', as these are for people who do not want to itemise all possible claimable items. It should be noted that HMRC may still ask you for evidence, and this could be problematic if you have never retained any receipts.
Do you work from home, as this will also affect the calculation somewhat?
@@1stformations Hello. I work full time lorry driver and part time sole trader from home 😁. Thank you so much
@@taylaburgess5976 Great! Have you watched any of our other videos?
Great video,very helpful,thank you .
Glad you found it useful. Are you planning to file your own Self Assessment return or use an accountant to do so?
@@1stformations yes i have done my own self assesment returns for about 10 years now and just submitted my 2020/21 return with the help of your video. Ive never seen the point of an accountant as my books are quite simple as a self employed sub contractor
@@bigfatolly1482 Great. What does your business specialise in, out of interest?
@@1stformations i am a sub contract painter and decorator
@@bigfatolly1482 Fantastic. What part of the UK do you operate in?
Hi, please what is the best tax software you recommend? self-employed?
Thanks for your message. We are not in a position to recommend a specific tax software, although a safe bet is normally to go with the household name in this subject, which may be Xero.
Have you looked at the major software providers in this market?
@@1stformationsFormations No, I haven't but, I'd like to have a look. If you have any links, please share. Thanks for getting back.
@@mrmaxwellogundu www.xero.com/uk/
www.freeagent.com/
Take a look at these and let us know what you think.
If I need to get an Uber to get to my self-employed place of work - does that count as an expense I can add?
Thanks for the comment! Unfortunately if you are referring to travelling from your home to your place of work (or vice versa) this would not be covered under the allowable business expenses.
This is great. Thank you. Question - If I earned £100k gross and gave £10k to charity from my net salary - Would I then get £2k back?
Thanks for the question! We can't provide specific financial information but you may find this link helpful: www.gov.uk/donating-to-charity/gift-aid
Ur so helpful
Thanks so much for your kind words! Are there any topics that you would like us to cover in future videos?
Thank you, very well explained.
Thanks for your kind words. Are there any other videos you would like to see us make?
@@1stformationsHow to record daily business mileage? Most of the time I forget to record mine,
You have two options - you can either estimate this based on the proportion of distance used for work compared to personal use - this would involve you logging the mileage at the start and end of the period and making a calculation. However, this method is risky and we do not advise it, as HMRC may ask for further evidence.
The second option is to improve your personal administration/habits to include alerts on your mobile phone to log the mileage at the start and end of every work day.
Would you say you could manage this level of personal administration, as we know many - including many of us - could not!
@@1stformations First of all, thank you so much for detailed reply, much appreciated, will try to go for 2nd option, let's see how it goes.
@@Techno-Charge Thank you for your response, it is much appreciated. In the meantime, is there anything else you would like us to cover?
Very informative video- wanted to ask, I run Facebook ads and spend a lot per month, am I able to claim 100% of the costs from self assessment?
We're glad you found the video helpful, Cheryl! Unfortunately, advertising expenditure of this kind is not an allowable expense and cannot be claimed on. Have you identified any other ways you can reduce your corporation tax bill?
What if I paid an agency that paid for ads on my behalf?
Really useful and helpful info
We are glad you enjoyed this video and got some helpful information from it, Marcia. What would you like us to focus on next?
Would quick books be classed as a subscription?
Hi Alex - yes, QuickBooks would be classed as a subscription. Do you have any other possible expenses you are unclear about?
Thanks for informative videos
Please advise can a UK limited company receive remittance say as a gift from parents in India in inr to gbp via online wired transfer and what are its tax implications compared to receiving money as a gift to a high income tax payer individual in UK ?
Ideally this money will then be used for 1st property purchase in the UK
If you can make a video will be brilliant and useful to hopefully few people 😊🙏
Many thanks
Hello Raj, thanks for leaving us a comment, we're glad to hear you're enjoying the series! Our Video Team will certainly take your suggestions into consideration when planning new video content! Do you have a Limited company of your own?
@@1stformations not yet
@@RajNRI Ah! If you'd like any help with the formation, feel free to give us a call to speak with one of our agents. We can also send you a referral to our partner accountant, who can help you to evaluate your different options in terms of funding your first house purchase :)
Hi. Can you please help? How to record bank loan on self employed tax return ? ( loan related to Covid-19 )
Do I record as income the lump sum received and repayments as expenses?
Thank you.
Thanks for your question, Rebeca! A bank loan is not considered income - as it is a loan and will need to be paid back. For this reason, your bank loan does not need to be declared in your Self Assessment Tax Return.
Do you have any other questions about your Self Assessment Tax Return?
@@1stformations After I finished writing the question I thought about it and completed the return without including the loan. Thank you for taking time to reply to my question. Great channel.
@@rebecaborha8083 You are most welcome Rebeca! Please feel free to check out the rest of our channel for more videos!
Can you claim accounting expenses on a Limited Liability company???
Yes you can Mardi. Are you a member of an LLP?
Good evening
I work as a self employed temporary staff and quite often the place of work could be so far from my flat that I must stay in a hotel for several weeks , until to finish the assignment. For example the flat I rent is in Leeds and for a month I must travel by train on Sunday to Leicester and to stay there in a hotel for three days and after that to return on Wednesday afternoon to Leeds and to do that again for another three weeks. So is it possible to claim tax relief for the train tickets and also for the hotel expenses? Is there any time limit on that ?For example If I work in a place in London for three months , three days per week and I return every week to Leeds can I still claim tax relief for traveling and hotels ?
Many thanks
Thank you for your question, George. To help us answer it, can you tell us if the location (hotel) you travel to is regularly the same, or if it changes each time?
@@1stformations I try to find a hotel or bed and breakfast which is close to the temporary work .The hotel could be the same or different each week depending on the availability . Thank you
@@1stformations ?
@@georgekiosses7025 If you are self employed and continuously visit the same area for work, that area will be considered a permanent place of work for tax purposes. If you live outside of that area and are commuting to that area for work, the travel there and back (in your case, train tickets) can't be included. However, any business specific travel within the area can be included in a Self Assessment Tax return.
With regards to hotel expenses, unfortunately this will also not be an allowable expense on a Self Assessment form, as it would have to be very infrequent to be allowable, and the frequency at which you do so would be well beyond their threshold.
We hope that helps!
@@1stformations There must be a limit (number of days ) when we say "continuesly" and "infrequently "?Because it did happen in the past to go to London just for one day's work and I paid for traveling and accommodation . Sorry , could I just ask this : is there anywhere where I could find the relevant information in any detail including numbers ?
Hi Nicolas,
I am uber driver and last month I just file my self-assessment, and forgot to add some of the expence like my private hire car insurance, few petrol cost (already add the most of them) and phone cost. What do I need to do.
you can file an amendment to the tax return. Log into your account, click the option to file an amendment and then make the changes and file them. Be aware HMRC look at amended ones more closely so be extra careful about what you claim for.
Thanks Mr. Lounds
Thanks for the Question Tessi! You can correct any mistakes on your self assessment return within the first 12 months after filing it. You can do this by logging into HMRC online services, navigating to your tax account, selecting 'More self assessment details', and then clicking through to get the section where you are able to make amendments to your tax return. Does that help you?
@@1stformations Thank you very much SIR. I really appreciate that.
@@jordanpeterson9490 Your very welcome! Do let us know if there is anything else we can help with.
Can you clams parking charges ?
Hi Christopher. Great question! Parking charges (as long as they aren't fines) are an allowable expense for self-assessment. I hope this helps.
Hi! I’m a freelance counselor. my jobs always use the working mobile phone face time service to communicate my client and on call service, I have 2 mobile phone to separate business and private use. the working mobile phone is wholly and exclusively business-related. Unfortunately my working phone is broke, I will buy the new one. It's allowed business expenses？Thanks
If the phone used exclusively for work-related matters has a separate contract, then yes you can claim for this as an allowable business expense. Is this the case?
I am a PAYE but I have to summit the Self Assessment- I don't earn or make £100k- Please advice how this is relevant and can I claim these expenses?
Thank you for your comment. If you are asked to submit a Self Assessment tax return by HMRC, then you must do so before the deadline otherwise you will receive a penalty. With regards expenses, we cannot comment on individual cases; however, if you are unsure of what you can and cannot claim, we recommend you seek the advise of an accountant. Have you got any other queries for us?
Hi, is that applies to sole traders too, or just ltd companies
Hi! Self assessment expenses are generally available for sole traders too. We hope that helps. Are there any topics you would like us to cover in a future video?
Can you claim accounting expenses on a Limited Liability company or through sole trader???
You can claim for business accountancy expenses as an LLP member or as a sole trader. Are you an LLP member?
@@1stformations Yes and thank you very much. Great channel
@@marditoon1128 Great. What does your LLP do?
@@marditoon1128 We're glad you like it. Have you watched any of our other videos?
Great video! Keep it up!
Thanks for watching Alex! What did you learn from from this video that you didn't know before?
@@1stformations I knew most things before I started watching. Still really informative! I did like the way you presented it.
@@AlexSavage Thank you for your feedback, Alex. Is there anything in particular that you would like us to cover?
1st formations are a company that opens other limited companies
That's correct, the general public is able to open limited companies using our company incorporation packages.
Are you looking to form a limited company?
What percentage can I claim of my total expenses? is it 100% of the total? Thanks
Thank you for your kind enquiry, Magdiel. Theoretically, you can claim 100% of the tax you would otherwise pay towards your expenses, but this is a rare circumstance. You cannot claim back 100% of the expenses themselves.
Do you know roughly how much your total expenses will add up to?
Can a sole trader expense non-gift aid registered charity donations?
Hi Bernadeta, thank you for your question. Please note, Charity donations are not allowable expenses for sole traders! Is there anything else we can assist you with today?
Hi just received my activation code for self-assesment, does i can buy expenses with my name (not business name) and before activation the self-assesment.Thanks!
Thanks for your comment! Yes, you can buy things and them claim them as expenses when your next self assessment return is due. Do you have any other queries regarding your self assessment?
@@1stformations Thank you - As beginner self-employed or may be in future LTD i need some advices and definetly i will get in touch with you soon in your office for more information and start moving the things forward, but firstly i wanterd to buy a van becouse my insurance expire soon , so if i understood corectly this is possible before self-assesment code is activated. Cheers!
@@bgnikstov Yep - that's right. Self assessment is to claim for tax deductibles that have happened in the previous 12 months - therefore if you buy something you can claim on in the future, you can add this to your next Self Assessment tax return.
Is there anything else we can clear up for you about Self Assessments?
@@1stformations Thnak you, no other question for now )
I bought an iPad. I use it 50/50. Can I claim as an expense for this tax year? Thanks!
Dear Ryan, thank you for your comment. If you have purchased your iPad purely for business use, then you may claim this as an expense.
It seems there's quite a bit of overlap between this and your other video on allowable expenses for your limited company th-cam.com/video/yATNCrkIYKo/w-d-xo.html
If I'm a limited company (sole director, contractor), I understand in general terms that I need to file a company tax return and a self assessment return. Would be great to get some clarity around what the difference is between the 2 filings and how the expense claims work. Can you claim eg. your home broadband for both returns if you work from home?
Thanks for your enquiry, Luke. In general terms, the differences between the two filings relates to the allowable expenses. For example, investments in plants and machinery, patent boxes and research and development relief are only applicable to limited companies. It is important you do not double claim on the same expense - i.e. fill in an expense claim for the same item on both a company tax return and a self assessment - as this could lead to a fine from HMRC.
Should you have any further questions, please do not hesitate to contact us.
is this just for sole traders?
Hi Noble - no, this can be for employed people who are also company directors or derive income via other means such as self employment or a second home, etc. Do you own a limited company or are you fully employed?
So with staff cost, to simplify, I have someone who is self employed, of which I pay him a certain amount from my business. To prove that costs are going out of my business correctly, I’ve asked him to invoice me monthly for amounts I have paid.
So can I claim all costs in the tax year I have paid him?
If so, is there a specific section in my self assessment that I may have to state this, or do I also include this in the expenses box on top of other material costs?
Thanks!!
Thanks for your question. Is the business employing the other person a sole trader or a limited company? This will help us to answer your question.
@@1stformations I’m a sole trader
@@kane_552x3 Thanks Kane. It is unlikely you will be able to claim back all of the costs of employing the other person; however, there may be some allowable expenses you will be able to claim back - such as if you are paying for their IT equipment etc. You will not be able to claim for their entire income with the business as this will not be classed as an allowable expense.
Does the other employee live with you or elsewhere?
@@1stformations they live elsewhere. But would I have to state this on my tax return as it’s outgoing going out of my business money from clients in my turnover or expenses?
I’m not sure where this has to be stated.
I wouldn’t want to have to pay tax on his behalf for something that isn’t really for my own personal benefit.
This brings me onto my next question. If for example, my business makes an income of 30 k, I may keep 5k of that in my account, meaning I only pay myself 25k. Will I still get taxed on ALL income, whether or not I pay myself it, or just the income I payed for my own withdrawals?
@@kane_552x3 Hi Kane.
Thanks for your clarification.
Can we ask some follow up questions to establish a possible answer?
1. The income is being received by your bank account or business bank account and then part of that income is then transferred to the employee - and you are worried by declaring the full income that you will be double taxed as you are paying some of it out.
2. Where does the money go when you receive it? Into a personal bank accouunt or a business bank account? I.e. where are you withdrawing the money from?
But whis IS that flat rate in number 12?
We always keep the best 'til last David! Do you think it should be higher on the list?
Paye can claim job expenses also
Yes, you are correct, employees on PAYE are able to claim job expenses. See this link for more information: www.gov.uk/tax-relief-for-employees. Does that help?