If you are self-employed it is important to know if an expense is tax allowable. Any allowable costs can be used to reduce your taxable profit.

As a general rule you can claim for items that you would normally use for less than 2 years as allowable expenses, such as stationery and other office sundries as well as rent, rates, power and insurance costs.

HMRC lists the following office expenses as being allowable:•  office costs, for example stationery or phone bills 
•  travel costs, for example fuel, parking, train or bus fares 
•  clothing expenses, for example uniforms 
•  staff costs, for example salaries or subcontractor costs 
•  things you buy to sell on, for example stock or raw materials 
•  financial costs, for example insurance or bank charges 
•  costs of your business premises, for example heating, lighting, business rates 
•  advertising or marketing, for example website costs 
•  training courses related to your business, for example refresher courses. 

Regarding training costs, you can claim training costs that help you:

•  improve skills and knowledge you currently use for your business 
•  keep up-to-date with technology used in your industry
•  develop new skills and knowledge related to changes in your industry
• develop new skills and knowledge to support your business – this includes administrative skills.

You cannot claim for training courses that help you:

•  start a new business
• expand into new areas of business that are not related to your current business activities.

For more information about tax relief, please contact us.