In the run up to the end of the tax year, HMRC has just launched a guide about business expenses for the self employed. The idea is to help businesses claim the right allowances and pay the right tax.
The guide is organised into four sections:
- What allowable business expenses are: what is meant by allowable, how to separate private and business use and what to do about set up expenses
- Revenue 'day to day' expenses: what is meant by day to day expenses and some examples of a typical allowable business expense – this section covers running costs, travel and premises costs and communication costs
- Capital Allowances: Here the tool outlines what the captial and annual invesmtent allownaces are (including first year allowances) and how to write down allowances
- Simplified expenses: this area explains simplified expenses and how to use flat rates for certain expenses rather than working out the business part of some expenses
The HMRC webiste also contains further help, a glossary and FAQs.