All self-employed individuals must complete a self-assessment tax return. You must be aware of the allowable expenses that you can claim as a courier, plasterer or tiler against your income. Talking from experience, several people end up paying a lot more tax than they need to, either due to a lack of recorded evidence when it comes to their costs or because they are not aware of the allowances and expenses that they can claim.
Simply put, all the expenses incurred by you that are exclusively and wholly dedicated to your work are essentially tax-deductible.
Now, you can claim the complete capital allowance for your motorcycle cost in the purchase year. This is known as the Annual Investment Allowance. It is quite handy and can lead to some generous tax savings for self-employed individuals.
Allowable Expenses for Couriers
There are a number of allowable expenses for couriers such as the cost of fuel, repairs, running the motorcycle, getting it serviced, MOT test, annual road tax, cleaning as well as washing your vehicle. It also includes toll and parking fees, postage, stationery and printing, protective clothing gear as well as trade magazines and professional subscriptions.
Couriers are also allowed other expenses such as using phones for business, accountancy fees, radio hire, advertising, motor insurance, RAC/AA membership and your license as well as any other registration fees. You can also claim the total cost of running an office or using your home as an office in addition to the interest in any personal or bank loans that you have taken to buy your motorcycle.
You can also claim a capital allowance for the motorcycle cost. This can be claimed in the same year when the motorcycle was purchased. In the same vein, you can also claim other assets that you have used, or you use for your business regularly. In addition to that, instead of claiming the running costs of your motorcycle, you can also go for the Fixed Scale Mileage Rate offered by HMRC. It is 24p per mile currently for a motorcycle. For a bicycle, it is 20p per mile.
Note that it is not possible to change between these two methods. You must stick with whichever method you adopt until you decide on changing the bike. This also includes a capital allowance or depreciation allowance for your motorcycle, excluding interest on any kind of loan that you took to purchase the motorcycle. You can claim this with the mileage allowance easily.
The contractor might deduct 20% tax from your gross payment in case you are a subcontractor at the CIS. If you do not have a UTR, the deduction would be 30%. That said, once you complete your tax return and the due tax is calculated, all the tax deductions shall be credited to you, and you will get a tax refund.
Allowable Expenses for a Plasterer or Tiler
All the materials that you use for work in addition to consumable tools and insurance can be claimed as an allowable expense. Plasterers and tilers can also claim advertising, internet costs, stationery and postage, trade magazines, computer consumables, cleaning and laundry, maintenance and repairs of equipment, wages, use of office and home, phone costs for business use and accountancy fees. In addition to that, protective clothing like work boots and overalls is also an allowable expense.
It is noteworthy that in case you use your vehicle for any personal use, you need to consider it when you claim any expenses. This means that you must deduct the percentage of time you used your vehicle for any personal errand.
You can also claim a capital allowance on assets that are used for your work and business such as a van, a car, equipment, plant or truck. In addition to that, you can also claim up to 100% allowance on certain items in the same year of purchase if you are a plasterer or tiler. However, cars are usually limited to only 18% per annum. Furthermore, assets that you owned prior to starting your business can be claimed in case you now use them for your business.
Limelight Accountancy – Our Service
It cannot be disputed that completing your tax return without any hassle and correctly might seem like a simple task but can come with a number of loopholes. In addition to that, the entire process can be rather time-consuming. This is precisely where we come in the picture. We can help you prepare as well as file your tax return without any fuss. Moreover, we will ensure that all your expenses are claimed so that you can save tax. Get in touch with us now for unparalleled tax return filing services! Also Read our valuable blog on How to Complete Your First Self Assessment Tax Return
Also refer us if any of your friend or family member is working as Plumber, Painter & Decorator. Learn more about Self Assessment Tax Return for Plumber, Painter & Decorator