What business expenses can you actually claim?

When you’re self employed you can off-set your business expenses against your profits to reduce your tax bill. So what exactly can you claim for and is the government going to give you free money? Today we’ll discuss the whole process from the perspective of a self employed sole trader in the UK. To keep things simple I’m assuming you’re using the Cash Basis for accounting and that your turnover is under £85,000 per year.

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Reference article here:

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⚠️ Disclaimer ⚠️

Business expenses chapters:
00:00 - Introduction
01:30 - General business expenses
08:30 - Wholly and exclusively rule
09:44 - Vehicle expenses
12:24 - Using your home as an office
15:33 - Reporting and record keeping

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[LinaAwwad-hn]

I recently started a limited company and I really enjoyed watching your videos. I do hope to find some videos that specifically address limited companies.
Another request, can you talk about accounting? I am struggling to understand the difference between integrated accounting services provided by Tide or other banking Apps and Xero for example.

[Jules_Pew]

Phone packages where you spend the same amount each month regardless and you need it for work, claim 100%. You'd have to buy another phone to keep it apart. I sort of worry about use of home and claiming proportional expenses as then if you sell your house, capital gains could come into force. I think an amount that you consider reasonable is fine. If you're working 100% from home, don't forget the canteen for coffee, milk, sugar etc. Also only your portion for meals solely for business meetings, like with your accountant. 😄 You can pay the whole, but can only claim yours except any alcohol. If you're away from your home office all day, you can claim subsistence - check what HMRC pay themselves. The longer you are away, the more you can claim, regardless if you take a packed lunch etc.

[mikegc]

Hi, is using a room as an office the same as working from home? I'm out working all day then come home and do some book keeping in my office or do I have to be in the office all day to claim? Thanks Mike

[rachellyddon]

If two people are both working from home, can they both claim the expenses of using the home as an office?