Self Assessment – self employed Gardener..
Allowable expenses, CIS tax refunds and allowances – the basics.
All self employed people like yourself have to complete a Self Assessment tax return and declare all your income for tax purposes, but are you aware of all the various expenses you can claim against that income? From our experience, there are a number of self employed people 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.
CIS Tax repayments
If you are a Sub-Contractor in the CIS you may be having 20% tax deducted by the Contractor from your gross payment. (30% if you don’t have a UTR) Don’t worry, after you Tax Return is completed and any tax due is calculated, the tax deductions will be credited and in most cases this will result in a refund of tax for you.
Allowable expenses you can claim
Materials used for your work
Repairs & maintenance of equipment
Protective clothing such as Overalls and Work Boots
Laundry & Cleaning
Telephone Landline – Business use
Mobile Phone – Business Use
Postage & stationery
Use of home as office
Bank charges on business account
Fares & Travelling expenses
Subsistence (if working away from home)
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.