Sole Trader Expenses

Hi all,

I have been trying to find an example of how you complete your income and expenses

So I know I am able to claim for things like mobile phone, new computer, software etc but dont know how it is reported, so for example I get a mobile phone do I say it’s £25 a month and provide the full bill from mobile company every month or just show the bank transaction?

Are you talking in terms of providing information to your accountant, or filling out a self assessment yourself? Although you should keep receipts and invoices to have confidence in the accuracy of your figures – and in case you’re audited – you do not provide them as routine during a self assessment, instead you provide a total figure for the amount you’ve spent on your business during the reporting period. The data you provide as part of your self assessment is essentially, “income: £x, expenses: £y, profit: £z” and you pay the appropriate tax. HMRC don’t want to know anything about your phone bill.

More with the accountant :wink:

Just supply all your receipts. Bear in mind, things like phones and computers, to claim 100% against expenses you need to use them 100% for the business - no personal use. If you use them for non-business purposes too, you can estimate the split and claim, for example, 75% of the bill.

Another thing to consider. There is a trader’s allowance of £1,000. If your business expenses are more than that, absolutely claim them all. However, if your expenses add up to less than that, forget the individual expenses and just claim the £1,000 allowance.

Ok cheers

So I take it the allowance is £1000 a year, all new to this :joy:

Yes, £1,000 each tax year. It’s completely separate to your personal allowance.

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