Expenses freelancers can claim…
Freelancers can claim expenses against their income like Travel costs, Marketing and Advertising costs, office equipment and office costs. However, if you work from home things can be more complex, HMRC say that you must apportion the running costs of your home on a ‘fair and reasonable’ basis between the private element of that cost and the part which relates to you living there. There are several ways to calculate this and our accountants at Acer Accounts can help you with your claim.
If you’re paying the higher rate of 40%, you can add charity donations to your tax return to reduce your tax bill and claim extra tax relief. You may consider setting up as a limited company to and draw part of your income a dividends which is only taxed at 7.5% for basic rate tax payer.
Self Assessment can seem quite straight forward, however, to obtain maximum benefit it may be worth talking to the team at Acer Accounts to help you understand what can and cannot be claimed.