As the end of the 2024/25 tax year approaches (April 2025), or you're yet to compete your 2023/2024 tax return, it's important to start preparing for your self-assessment tax return. Knowing what allowable business expenses you can claim is key to reducing your tax bill and maximizing your profits. In this blog, we’ll outline the main allowable expenses you can include on your self-assessment tax return to help you save more money while staying compliant with HMRC rules.
1. Office Costs
If you run your business from an office or even remotely, there are several expenses you can claim, including:
- Stationery and office supplies (e.g., pens, paper, printer cartridges)
- Utility bills like heating, lighting, and water (if you have a dedicated business office)
- Phone and internet expenses (you can claim for business calls, but not personal use)
- Rent for office space or coworking memberships
2. Travel Costs
Business-related travel expenses are also deductible, including:
- Fuel costs for business trips, or mileage if you use your personal vehicle
- Public transport tickets like trains, buses, and taxis
- Parking fees and tolls
- Accommodation costs for overnight stays on business trips
- Food and drink while traveling for work (subject to specific rules)
💡 Note: You cannot claim for daily commutes from home to your usual workplace. Travel must be business-related.
3. Staff Costs
If you employ staff, you can include several staff-related expenses in your tax return:
- Salaries, wages, and bonuses
- Employer National Insurance contributions
- Pension contributions
- Subcontractor costs, if you hire outside workers
4. Marketing and Advertising
Promoting your business is essential, and you can claim the following marketing expenses:
- Website costs, including hosting, design, and development
- Social media ads and other online marketing expenses
- Print advertising, such as leaflets, flyers, or newspaper ads
- Branding materials, like business cards, brochures, or banners
5. Equipment and Tools
If you need equipment to run your business, you can claim:
- Computer and IT equipment (laptops, desktops, printers)
- Tools and machinery for your business
- Office furniture like desks, chairs, or filing cabinets
💡 Top Tip: You may be able to claim the cost of these items all at once or through a process known as capital allowances, which spreads the cost over multiple years.
6. Professional Fees
Certain professional fees and subscriptions are deductible, such as:
- Accountancy fees (yes, we can help you claim back our services!)
- Legal fees related to contracts, property, or other business matters
- Professional memberships to trade bodies or industry groups
- Insurance premiums, including professional indemnity or public liability insurance
7. Home Office Expenses
If you work from home, even part-time, you may be eligible to claim a portion of your household expenses. You can include:
- A proportion of your rent or mortgage interest
- A share of utility bills, such as electricity, gas, water, and internet
- Council tax (in proportion to the space used for your business)
💡 Pro Tip: HMRC allows a simplified home office expense deduction based on hours worked from home, or you can calculate actual costs.
Stay Compliant and Maximize Your Deductions
It’s important to ensure that the expenses you claim are **wholly and exclusively** for business purposes. If your expenses have both business and personal use, you can only claim the portion that relates to your business.
At Strength in Numbers Limited, we specialize in helping business owners navigate their self-assessment tax returns. We ensure that all your allowable expenses are claimed, maximizing your tax savings while staying fully compliant with HMRC.
Need Help with Your Self Assessment Tax Return?
Let us handle your tax return so you can focus on what you do best—running your business.
📞 Get in touch with us today and let’s make tax season stress-free!
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