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The Sigma Company

Maximize Your Savings: Essential Tax-Deductible Expenses for UK Self-Employed

For self-employed individuals in the UK, there are numerous expenses that can be deducted from taxable income to reduce the overall tax liability. Here is a comprehensive list of tax-deductible expenses:


General Business Expenses

  1. Office Supplies: Stationery, printer ink, and postage.

  2. Professional Fees: Accountancy fees, legal fees related to the business.

  3. Insurance: Business-related insurance policies, such as public liability insurance.

  4. Marketing and Advertising: Costs of marketing materials, website development, and online advertising.

  5. Training and Courses: Professional development and training courses relevant to the business.

Premises Costs

  1. Rent: Cost of renting business premises.

  2. Utilities: Electricity, gas, water, and phone bills for business premises.

  3. Maintenance and Repairs: Necessary repairs and maintenance of business premises.

  4. Security: Security costs such as alarms and surveillance.

Home Office Costs

  1. Home Office Use: A portion of rent or mortgage interest, utilities, and council tax.

  2. Equipment: Computers, printers, and other office equipment.


Travel and Vehicle Costs

  1. Business Travel: Train, bus, airfares, and accommodation for business trips.

  2. Vehicle Expenses: Fuel, servicing, insurance, and repairs if the vehicle is used for business purposes.

  3. Mileage Allowance: If using a personal vehicle, you can claim a mileage allowance (45p per mile for the first 10,000 miles, then 25p per mile thereafter).


Staff Costs

  1. Salaries: Wages paid to employees.

  2. Pensions: Employer contributions to employee pension schemes.

  3. Benefits: Staff benefits such as childcare vouchers.


Financial Costs

  1. Bank Charges: Business bank account fees and overdraft charges.

  2. Interest: Interest on business loans and finance agreements.

  3. Bad Debts: Money that cannot be recovered from clients.


Subscriptions and Memberships

  1. Professional Subscriptions: Fees for professional bodies and trade associations.

  2. Publications: Subscriptions to trade journals and magazines relevant to the business.


Equipment and Tools

  1. Purchase of Equipment: Depreciation on machinery, tools, and computers.

  2. Maintenance: Costs of maintaining equipment and tools.


Miscellaneous

  1. Clothing: Uniforms or protective clothing necessary for the job.

  2. Entertaining Clients: Limited to certain conditions and often subject to strict rules.

  3. Software: Costs of software subscriptions and licenses.


Specific Deductions

  1. Research and Development (R&D): Costs related to R&D projects.

  2. Health and Safety: Costs of compliance with health and safety regulations.


It's important to maintain thorough and accurate records of all expenses, including receipts and invoices, to support your claims in case of an audit. Consulting with a professional accountant or tax advisor can also help ensure all eligible expenses are claimed correctly and compliance with HMRC regulations is maintained.

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