Keeping records is a must for accurate assessment of your expenses – therefore saving you tax. You should start keeping all business related expenditures invoices and receipts before you start trading as most of them will be deductible. Besides the general deductible expenses, the ones below should be claimed;
- Training costs
A deduction for training costs may be possible when the training is to update existing skills (treated as revenue expenditure) as opposed to when the training is to acquire new skills.
Many professions require their members to maintain continuing professional development to keep their skills up to date. The cost of the training along with any associated travelling costs are deductible in arriving at taxable profits.
- Professional subscriptions
Most professions require members to pay an annual subscription to a professional association. Where the subscriptions are paid by a company, they are deductible in computing the profits of the company and as long as the subscription is on HMRC’s list (List 3), the employee will not suffer a benefit in kind tax charge. Subscriptions to local professional societies or branches are also deductible if the object of the branch or society is mainly professional.
- Mobile phones
Mobile phones are tax free if provided to you by your employer, where your employer and not you has the contract with the network, private calls you make are irrelevant. The full cost is tax deductible. However, if you use your own mobile phone for work, only individual business calls costs can be claimed as tax deductible. Wait no more, transfer your mobile phone contract to your company!