S2E4 What allowable expenses can sole traders claim?

Mike Parkes joins us for episode 4 of the Start Your Own Business podcast to talk all things allowable expenses

Filing a tax return is frequently cited as the worst aspect of being self employed. And there's little wonder. With complicated rules on what you must declare, how you must submit your return and when, combined with the threat of penalties for late and incorrect filing, these findings are no surprise.

Then there's the whole issue of which expenses you can actually claim. Allowable expenses can be claimed when you submit your tax return, reducing your profit and the resulting amount of tax payable. But how do you know which are allowable? Can you claim for uniform or the costs entertaining clients or the costs of running your business from home, for example? What about travel expenses and costs you incur before you even start working for yourself?

In this episode, we talk to Mike Parkes, technical director at Oldham-based GoSimpleTax about allowable expenses for sole traders, which can be claimed, common misconceptions and schemes that can simplify the claim process.

Show notes

Find links to content related to the topics covered in this episode below.

Registering for self assessment

Allowable expenses

Accounting records

Simplifying your tax return

Further help and support

About Mike Parkes

Mike is technical director at Oldham-based GoSimpleTax. He has worked for HMRC and in practice for most of his 30-year career and has a detailed understanding of personal and small business taxation.

GoSimpleTax is the digital solution for the self-employed, freelancers and anyone with income outside of PAYE to record income, expenses, and file self assessment tax returns. It gives hints on savings along the way. GoSimpleTax does all the calculations saving ££s on accountancy fees. Take control of your finances today and always know your tax owed.  Grab your 25% discount via www.gosimpletax.com/money

About our sponsor

Thanks to the Federation of Small Businesses (FSB) for sponsoring the Start Your Own Business podcast.

If you've got a brilliant business idea or you're on your way to start-up success, FSB is here to help you every step of the way. As the leading voice of 5.5 million small business owners and the self-employed, they're helping entrepreneurs like you to achieve your ambitions.

Business life can be tough, but with FSB by your side, you won't have to go it alone. From market-leading business services like 24/7 legal advice and financial expertise, to local networking and a powerful voice heard in governments across the UK, you'll always have support by your side. With FSB's updates on the latest guidance relating to important issues like trade, digital skills, late payments, and sustainability, you'll stay one step ahead.

Find out more about how FSB can support you to start, run and grow your business at fsb.org.uk/join.

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