In partnership with
Having to pay for stock/materials, services and other costs is inevitable when running your own business. Thankfully, many can be claimed as allowable tax expenses, which helps to minimise your tax bills. But many sole traders don’t claim all of their allowable tax expenses, which means they pay too much tax.
Research by The Accountancy Partnership found that 81% of business owners admitted to not fully understanding what a legitimate business expense is.
More than half search online for answers, while 13.5% ask their bookkeeper or accountant for guidance.
That leaves 12% clueless as to what they can expense, while 2% are reluctant to expense anything for fear of committing fraud and being fined by HMRC.
Our main feature this week runs through costs sole traders can claim as allowable tax expenses. We also look at costs that cannot be claimed as allowable expenses. If you’re looking to read the latest news that affects your small business, scroll right to the bottom.
