Tax Return help for mobile self employed Hairdressers..
Guide to claiming allowable expenses, allowances and saving tax.
All self employed Mobile Hairdressers have to complete a tax return. It is important that you are aware of what allowable expenses you can claim against your income. From our experience, there are a number of people that end up paying more tax than necessary, either because they haven’t recorded evidence of their costs or they don’t realise what expenses and allowances they can claim. Basically any expenses that you have incurred which are wholly and exclusively for your work are tax deductable.
We have listed below the most common expenses which can save you tax
Chair Rent in Salon ( If applicable)
Materials such as shampoo, chemicals etc.
Equipment such as scissors, Hair Dryers etc.
Protective clothing & Uniforms
Computer for work
Professional Subscriptions & Licenses
Laundry & Cleaning
Telephone Landline – Business use
Mobile Phone – Business Use
Postage & stationery
Use of home as office
Bank charges on business account
Fares & travelling
Other sundry items
Vehicle running costs (read notes below)
Repairs & Maintenance
Road tax, insurance & MOT
Parking & Tolls
Please note : If you use your vehicle for your own personal use then you need to factor this in when any expenses are claimed. For example if you calculate that you use your vehicle 20% of the time for personal or family use, then you would need to reduce any relevant vehicle running expenses by 20%.
An alternative to claiming the vehicle running costs is the HMRC’s Fixed Scale Mileage Rate which is currently 45p per mile for the first 10,000 and 25p thereafter. This includes a depreciation allowance (capital allowance) for the vehicle but does not include interest on any loan to purchases the vehicle. This can be claimed in addition to the mileage allowance
Capital Allowances can be claimed on assets used for your business and work, such as a car, van, truck or plant & equipment. You can claim an allowance of up to 100% in the year of purchase on certain items although cars are restricted to 18% per annum in most cases. Also assets you owned before you started the business may also be claimed if you use them now for your business.
KWA Tax Returns Online – our service
Completing your Tax Return correctly, without hassle, may not be an easy task and also can be time consuming. For just £130 (after tax relief £104) we can prepare and file your Tax Return for you without any fuss and ensure you claim all the expenses you are entitled to, saving you tax. Simply provide us with the information we ask for then leave the rest to us.
Contact us or register and start using our online service now.
The material in this article is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation.