HMRC warns it's time to declare offshore assets

Taxpayers could face penalties if they fail to declare their income on foreign assets before Requirement to Correct legislation comes into force: https://www.gov.uk/government/news/hmrc-warns-its-time-to-declare-offshore-assets

Top Self Employed Tax Deductible Expenses

Self-employed professional’s experience unique challenges when tax season comes round! But most of the self-employed people are not aware of some of the taxable profits which they are entitled to. So while filing your tax returns you need to work out the allowable expenses,to ensure maximum tax savings.

But you may not be allowed to subtract all of your expected self-employed expenses as HMRC has clear guidelines for allowable and disallowables. When you file your returns, don’t hesitate to claim these allowable expenses:

HMRC also provide great guidance on this please click on the HMRC Expenses Guide

Office Expenses:

In this, you can include business equipment like computers, software, business stationery, printing cost, phone, broadband etc The more expensive items that you will keep longer than one year should be claimed as capital allowances. If you work from home you will be able to claim a portion of costs like rent, electricity, internet etc. This is known as the use of home as an office expense. A good guide to this can be found at Ross Martins Tax website

Travel:

Travel expenses include the cost of transportation to and from your destinations and the cost of transport at your destination that include car or van costs, fuel, repair, servicing and breakdown costs etc. At times it is more tax beneficial to claim mileage at 45pence per mile instead of the usual motor expenses. Yet we can advise on this further.

Legal and Financial Costs:

If you need to hire an expert to take of your business needs like an accountant or an architect, the cost of hiring them can be included in your expenses.

Business Insurance:

The cost of business insuranceincludingpremesis, public liability, professional indemnity and employer’s liability insurance are allowable.

Clothing:

The cost of the uniform or protective clothing that is required at your workplace. But you should not include the cost of your personal clothing.

Educational Expenses:

If any individual takes training courses or purchased books/research materials to be used solely wholly and exclusively for their business, then this is an allowable deductible expense.

You need to collect and keep all the receipts and other proofs of purchases as these would be required by HMRC if ever therewasa tax investigation. Personal Tax files are quite complicated and if you make any mistake you would automatically be entitledto fines. So seek professional help to file your tax returns accurately with total books flexible pricing packages.

By |2018-09-04T12:35:07+00:00August 11th, 2018|Personal tax, Tax|

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