Top 5 tax expenses people often forget

In many ways the 31st January tax deadline is a cruel thing. You’ve been busy with Christmas, festive fun and family time. You’ve spent more than you care to admit on food, drink and gifts. You’ve started the New Year off feeling hopeful and with a renewed drive for your business…but wait, before you get stuck into planning for the year ahead you need to sort out your Tax Return!

Every year you promise yourself you’ll be more organised, but each year that January deadline looms and once again you’re scrambling for receipts and trying to figure out what you can expense.

In the mad rush to get this dreaded task put to bed you may overlook some useful expenses that could save you money on your tax owed.

Here are Buckley’s top 5 tax expenses people often forget:

  1. Home Expenses: If you work from home at any point, whether it be a few days a week, or in the evening, you can claim a proportion of your household running costs, including mortgage interest, electricity, gas and council tax.
  2. Subscriptions: Do you pay to be part of a professional body? This could be the Chartered Institute of Marketing, or your local Chamber of Commerce. If your membership is connected to your job/business, then you may be able to claim for your membership fees.
  3. Interest and Finance Charges: Any interest incurred exclusively for business purposes can be claimed. This can include mortgage interest, credit card interest, and personal loans.
  4. Business insurance: If you need any insurance for your business, e.g. public liability insurance, professional indemnity insurance, etc. then the cost is tax deductible.
  5. Ongoing training costs: If you need to keep your skills and knowledge up to date then you can claim costs for training as a business expense. If you are being taught something new which will enable you to add to your products or services then that is viewed as capital, and you should seek advice from your accountant.

What you are entitle to expense may depend if you’re a business owner or self-employed, if in doubt speak to your accountant to make sure you are not forgetting any allowable expenses which could save you money.

For further information, please contact us.

We are part of the Xeinadin Group. The firm of the future!