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One of the great things about our service being online is that we’re able to bring information and guidance directly to you, wherever you are and however you work.
Our webinars give you the opportunity to gain valuable knowledge in a variety of business issues, broken down in bite-sized pieces, ready for you to apply to your day-to-day self-employed life.
We previously hosted a live business expenses webinar and we had some great questions from our attendees. From what type of travel you’re able to claim expenses for, to research and development relief, it seems that understanding expenses is an area of much confusion for many self-employed people.
Don’t forget that you can also check out our dedicated expenses articles for both sole traders and limited companies for more information. You can also download sole trader and limited company expenses business guides to keep and read whenever you’d like.
Crunch’s Senior Accounting Technical Manager Chris Barnard was also on hand to answer some expenses queries from our audience of freelancers, contractors and small business owners.
Q: I did some research for a client but they didn’t pay, can I claim?
A: If you suffered any cost as part of the research, you will be able to claim this as an expense. If the research was innovative and new, you may be able to claim Research and Development tax credits.
Q: Can I claim expenses for my business internet and landline?
A: As a rule, you can’t claim expenses on your business internet and landline as you might be using the internet and your phone for personal use. However, if you are using a separate business broadband and phone line then you might be able to claim.
Q: Can I claim my Professional Institution Fees as an expense when self-employed?
A: Yes, as long as it is in HMRC’s list of professional subscriptions.
Q: Can I claim expenses on buying things for my home office like a computer and a desk?
A: Yes, you can. You must have the original invoice and use it minimally for personal use. The reason for the purchase must be for business.
Q: Why should I bother to claim entertainment expenses if they don’t reduce your taxable profit?
A: As it reduces your accounting profit, it means the company is allowed to pay this. Therefore, you personally won’t pay any income tax on either dividends or salary that would need to be declared otherwise.
Q: I was recently away working onsite for another business and had to stay up for the week. They paid for my accommodation, but am I able to claim my meals while away? Would this include breakfast, lunch and dinner for the duration of my stay?
A: Yes, you can claim the actual costs with receipts as proof and as you are staying overnight, you can claim an additional £5 per night for incidentals.
Q: Can I claim education?
A: Yes, as long as it’s related to the business activity and a result of the training would be to make your business more marketable.