As I previously mentioned, HMRC has a wide range of help for all types of businesses, and in this occasion I would like to share with you some really great links detailing how to deal with business expenses when you’re self employed.
To know more about what counts as business expenses when you’re self-employed, you can visit this link: https://www.gov.uk/expenses-if-youre-self-employed
Cash basis is the accounting method where you record transactions when they actually hit or leave the bank. This makes it simpler to track your money movements and keep records if you’re not an accountant (or haven’t hired one yet). For more info go to: https://www.gov.uk/simpler-income-tax-cash-basis
If you are a sole trader or a partnership and work from home, you don’t have to do complicated calculations to find out what you can claim anymore. HMRC has launched the Simplified Expenses scheme to make it even easier for you: https://www.gov.uk/simpler-income-tax-simplified-expenses. In fact, if you’re unsure whether or not you can use it, they even have a checker tool where you can find out if this scheme works for your business: https://www.gov.uk/simplified-expenses-checker
For those of you who are more visual, here is a YouTube video on the topic: https://www.youtube.com/watch?v=vHFhnmosFis
And if you feel like you need to sit down and have a proper look at this, there’s even an e-course for you! http://www.hmrc.gov.uk/courses/SYOB3/syob_3_exps/html/syob_3_exps_menu.html
Happy starting-up!
