What Is and Isn’t Allowed?
If you are self-employed, you will have various expenses to run the business like a cost you would pay for office, equipment, travel, clothing, staff, reselling goods, legal and financial, marketing, entertainment, and subscriptions. Knowing what is and isn’t an allowable expense is important so that you can deduct some of those allowable expense cost from your taxable profit.
For example, on the infographic below we have listed what is and isn’t allowed as a business expense for Self-Employed Nurses.
The information provided is not meant to be an accounting advice but an infographic of what was found on the www.gov.uk website regarding Expenses if you’re Self Employed. The costs mentioned here excludes the staff expenses, marketing and entertainment expenses usually claimed by other Self Employed professionals like consultants, service providers, and various other tradespeople.
As Self Employed individual/business one has to maintain and keep all the income, expense, invoicing and accounting records for up to 6 years, as HMRC can request it anytime for review. To do this electronically businesses will need an Accounting Software especially a Cloud-based Accounting Software which can be accessed from anytime, anywhere and help businesses to see the cashflow, identify the financial status of the business and the accounting reports can be downloaded, e-mailed or printed as and when needed. Be an early bird to adapt to the Making Tax Digital initiative by HM Revenue & Customs (HMRC). Accounting Chatbots on Facebook Messenger are the new trend for managing income, expenses, invoicing and accounting on the go. It is an all-in-one cost-effective solution for business management and accounting directly from Messenger. Search for Reach Robo Accounting Chatbot on Facebook and ping Hi to get started. Alternatively contact us to know more Reach Accountant UK.