Ok, this isn’t about defrauding the taxman, it’s just that there are quite a few things that you are allowed to offset your ever growing tax bill that you may not have known about.
If you already know this stuff then great, you are ahead of the game! At least you know you haven’t missed anything.
If you aren’t sure then read on…
Yes that’s right. If you need special clothes as part of your employment you can offset the maintenance of these against tax. That means, cleaning, repairing and replacing. So if you need special boots for your building job, overalls, protective helmet or anything ‘out of the ordinary’ there is a high likelihood you can claim the maintenance of these back against your tax bill. It doesn’t mean a spending spree on ASOS though for your next holiday!
If your children are above the age of 16 you can employ them in the school holidays to distribute leaflets, organise your office, take documents to clients or any one of a number of different tasks. Provided you don’t pay them excessive amounts then this too can be offset against tax.
Well, not ‘your partner’ as such, but if you work with your partner in your business, the salary that they earn lowers your taxable profit, meaning more money in your pocket. You can even go one step further and make your partner a shareholder in your business, meaning that when it comes (hallelujah!) to paying a dividend from profits, this can be shared in a tax-efficient way.
Your Living Costs
If you work from home you can claim expenses back on things like heating, council tax, electricity, mortgage interest, rent and internet / telephone rates. There’s a formula to work this kind of stuff out – we recommend taking a look at this helpful guide from Freeagent.
Food and Drink
This isn’t about dining out on a Friday night with your pals and claiming it back it’s about that meeting over coffee or that working lunch with a client. If it’s food or drink consumed when you’re away from your usual place of work and during work hours – you can claim it back. And if you’re on an overnight business trip you can claim subsistence allowance at £5 per night for overnight stays in the UK and £10 for overseas.