Bookkeepers

What am I allowed to claim as a business expense?

Business group portrait - Six business people working together. A diverse work group.In the early days when I set up my business, I was spending a lot of money on different things and I didn’t know what business expenses I could claim to reduce my tax bill.

I realised that what I spent the money on affects whether – and how – I could claim tax relief for it.

I needed to separate the business expenditure from my private expenditure as it is only the business part that is allowable.

I have a mobile phone that I use for my business, I also use the phone to make private calls.

As I can only claim the cost of the business calls I make, I need to make sure that I keep records to support this.

I also need to make sure I regularly update my records and keep the information securely, as these records will help me to complete my Self Assessment tax return.