Freelancers: Claim All Of Your Expenses

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As a freelancer or contractor, you will be aware that until April 2016, you can claim expenses such as travel and subsistence costs against your tax.

With some legislation changes fast approaching, which will remove the right for workers employed under direction, supervision, or control to claim for travel and food costs from April 2016 it may be useful to know about some more uncommon business expenses that you can claim for as a freelancer:

Working with a computer?

If your job role requires the use of a computer, the cost of eye tests and potentially glasses or contact lenses can be claimed back!

Have to wear a uniform or does your role require protective clothing?

Allowable business expenses can include uniforms, protective wear and costumes for temporary employment positions. So if your uniform needs washing, repairing or replacing you can claim back the costs!

However, if your employer provides facilities to do this for you and you choose to do so yourself, you are not entitled to make a claim.

Give money to a good cause

If you donate to charities regularly or if you’re just making a one-off donation, if you’ve made your donation through Gift Aid donations are eligible for tax relief. Gift Aid also gives the additional benefit of allowing the charity to claim back a percentage of the donation sum from the Government.

Making pension contributions?

Most personal pension providers will accept employer contributions paid directly from a Ltd Company. This is a win-win situation as your company will gain corporation tax relief on the value of the contribution and the amount is not assessed on you personally as income.

Finally, here’s one more perk – for working from home

If you have to work from home, household running costs such as electricity, gas and telephone bills are likely to increase. For costs only associated with work, such as business calls, you can make a claim against your tax.

However, rent or broadband for example, which are used for both private and business use cannot be claimed for. Also important to note is that if you’ve voluntarily agreed to work from home under a ‘homeworking arrangement’ you are not entitled to tax relief, and although your employer may choose to make a contribute towards your expenses, they do not have to.

Think you’re entitled to claim?

If you think your entitled to claim for any of the above and would like more advice, or if you’re seeking a new accounting solution visit Ship Shape Accounting at www.shipshapeaccounting.com or call 0207 706 5250 for a chat with our friendly team.