March 26, 2010

Tax Deduction as Business Expenses

 

Employees or directors of organizations are eligible to get tax relief for business expenses they have paid for. These include the cost of professional fees or subscriptions, business travel and subsistence, tools and specialist clothing. The tax relief is normally available for the cost of traveling they had to do in doing their job, and other expenses they had to pay in doing their job. You can not ask for tax relief if your employer has already reimbursed you for the expense and has agreed a dispensation with HM Revenue & Customs (HMRC). There are several tax relief options that you might be able to get to reduce your tax bill.

 

You may be able to get tax relief for business mileage when you use your own vehicle on business, or for fuel you buy when you use a company car. You can not claim tax relief for your normal commuting costs. You can go back several years to get the relief. The time you have got depends on whether you have previously sent in a Self Assessment tax return. Business mileage is mileage you travel doing your job. It can include travel to a temporary work place but it does not include normal travel between your home or anywhere that is not a workplace, and your permanent workplace or private travel.

 

Additionally, you can ask for tax relief for the cost of fees and subscriptions you pay to some approved organizations if you have to pay them, or if it is helpful for your work.

As an employee you may be able to reduce your tax bill by getting tax relief on any professional fees and subscriptions you pay. You can go back several years to get the relief. The time you have got depends on whether you have previously sent in a Self Assessment tax return.

 

If you have to provide small tools or buy specialist clothing for your work, like uniform or protective clothing, you may be able to get tax relief for the cost of them. If you buy something like a filing cabinet or a desk for your work, called capital expenditure, you might be able to get capital allowances to help with the cost. You may be able to get relief for some household expenses and some traveling costs if you work from home. You might also be able to get capital allowances for capital expenditure.

You may be able to get relief for the cost of business travel - for example if you need to visit a client or go to a temporary workplace. You can also ask for relief for subsistence such as the cost of meals and overnight expenses. There are some special rules or arrangements for certain tax allowances and relief, for example if you are working on board a ship, working or living abroad, or coming to work in the UK.

You can ask for tax relief for your business expenses on your Self Assessment tax return if you have to fill one in. If you don't have to, you can use a form P87 'Tax Relief for Expenses of Employment' to tell HMRC about the expenses you want to ask for relief for or sometimes you can just call them.

Read More Article

Green Card System for Motor Insurance
Best Options Motor Insurance

Technorati
Permalink • Print • Comment

Trackback uri

http://www.taxsaveronline.com/blog/index.php/798/tax-deduction-as-business-expenses/trackback/

Related Entries

Leave a Comment