Often people overlook a number of tax deductible business expenses which they have paid out of pocket. Often these allowable expenses can be reclaimed from the Inland Revenue. This article provides more details on what is an allowable business expense and how to claim your allowance back.
What Tax Deductible Business Expenses can you claim?
The Inland Revenue give a very broad definition on the types of businesses expenses that can be claimed. They say, that any expenses that you incurred that were require to do your job can be refunded. There are a number of caveats though, the expenses you incurred must be related only to doing your job. For example you can not claim for the cost of a normal suit or other clothes even though you need to wear this to work, as the Inland Revenue would argue that these items are not related to only your job.
If your employer has already paid you compensation for a business expense, it goes without saying that you can not claim this expenses again from the Inland Revenue.
What are the Main Business Expenses
1. Business Mileage – Can be claimed on any distance that you travel on work. You can not claim the distance travelled to or from your place of work to your home but any other mileage can be claimed. If you are using a car or a van business mileage can be claimed at the rate of 40 pence for the first 10000 miles per tax year and 25 pence on any mileage over.
2. Professional fees and subscriptions – If you are a member of an approved professional body, you can reclaim the subscription fee or dues that you are required to pay. The Inland Revenue has a list of the approved organisation on their website.
3. Tools and Protective Clothing – If you require protective clothing to do your job, such as clothes or a hard hat this can often be claimed against your tax bill. You can contact your local tax office to find out what exactly is allowed.
4. Expenses when working from Home – If you work from home you can claim a number of expenses including the extra, electricity, gas and telephone bills that you have to pay as a result of working from home. Unfortunately you can not make a claim for expenses that you are already paying for, such as your mortgage or council tax.