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You’ve recently filed and paid your tax return—but are you sure you claimed every expense you’re entitled to? If not, read on.
No one wants to pay more tax than necessary. Every penny counts when it comes to your business’s cash flow, and keeping money in your business is essential for long-term sustainability.
In this blog, we’ll highlight the top five most commonly overlooked expenses that people miss on their tax returns.
Mobile Phone Bill
If you’re a Sole Trader, you likely use your mobile phone for both personal and business purposes. Don’t ignore this as a deductible expense! Figure out a fair way to split your usage, separating business-related calls, texts, emails, and even app usage from personal time.
For example, if you estimate that 90% of your phone use is business-related and your monthly bill is £50, you could claim £45 per month. That’s a significant savings over a year that you don’t want to miss!
Professional Fees
Did you know bookkeeping fees are tax-deductible? Your bookkeeper is not only helping you manage your transactions and save time, but their fees are also considered a business expense—a win-win!
Other deductible professional fees include those for legal services, or Virtual Assistant services.
Mileage
Think you need a company car to claim business mileage? Think again!
If you’re using your personal car for business travel, you’re eligible for mileage allowance relief. This covers costs like fuel, road tax, repairs, and general wear and tear. Whether you drive a car, lorry, van, or even bike for business, you can claim the following mileage rates:
45p per mile for the first 10,000 miles
25p per mile after 10,000 miles
Tip: Keep a detailed log of each business journey, noting the starting and ending postcodes and the purpose of the trip. Add up your yearly mileage and multiply by the appropriate rate to get your deductible amount.
If you are using your own car to travel for business then you are entitled to claim mileage allowance relief.
If you have any questions about business mileage or need some help to keep track please book a call.
Software and Subscriptions
If you’re using software to run your business, you can likely deduct the cost—just make sure it’s not a lifetime subscription. Monthly or annual software fees count as business expenses, as do memberships for coaching or professional development programs.
Training and Self-Development
Training expenses can be tax-deductible, but there’s a catch: they must directly enhance your current expertise. Training that broadens your existing skillset in your field is fair game. However, training for a brand-new career doesn’t qualify.
For example, if you’re a restaurant owner wanting to add a new, relevant service—say, culinary or management training—those costs are deductible. But training to qualify in an unrelated field, like hairdressing, wouldn’t count.
If you have any questions about these expenses or need extra support with your bookkeeping, feel free to reach out. We’re here to help you keep your finances in top shape!
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