Tax return allowable expenses list 2017/18

[Majid Khan]

Hello experts,

I am actually a self employed electrician working away 10 hours every day and I need a bit of advice from you guy please. I did my tax return on my own last year. I did add couple of things in my expenses list like phone bill( job %), clothes cleaning exp, tools, food and travel. Now its the time to do it again but One of my mate said to me that I can't claim back on food and travel. I would like you guy to advice me on this mater that should I include food and travel in my allowable expenses or not and how much please per day.
Thank you.

 

[Wes1000]

I hate tax returns.
All I do is put everything in a box and drop it off at the accountants office.
All that time I would spend head scratching I’m out working and I’ll earn more than the accountant will charge me so it’s a no brainier for me.

 

[Fitzy]

You can claim for ALL your travel expenses, if they are related to your work. As for food, if you leave home every morning and return home in the evening, then no, you can’t claim for food, drinks etc, you can only claim for sustenance if your staying away from your permanent address. Basic rule of thumb is that you reclaim any expenses if they are vital to you earning money. So if you take a potential customer out for business lunch to get a contract, then you can reclaim it (within reason though). If wear personalised work clothes/uniform then you can reclaim your yearly cleaning expenses (roughly £56 per annum), plus you can reclaim the initial purchase price of the uniform.

 

[Majid Khan]

You can claim for ALL your travel expenses, if they are related to your work. As for food, if you leave home every morning and return home in the evening, then no, you can’t claim for food, drinks etc, you can only claim for sustenance if your staying away from your permanent address. Basic rule of thumb is that you reclaim any expenses if they are vital to you earning money. So if you take a potential customer out for business lunch to get a contract, then you can reclaim it (within reason though). If wear personalised work clothes/uniform then you can reclaim your yearly cleaning expenses (roughly £56 per annum), plus you can reclaim the initial purchase price of the uniform.

Thanks for the reply, I just found something related to this which says Subsistence:
Away from home for less than 10 hours £5.
Away from home for more than 10 hours £10.
Earlier than normal start, add £5 for breakfast.
Working later than normal, add £15 for evening meal.

newly Self employed,what can I claim - https://www.electriciansforums.co.uk/threads/newly-self-employed-what-can-i-claim.123038/page-2

 

[Rpa07]

Making me feel hungry - I need sustenance.

Thanks for the reply, I just found something related to this which says Subsistence:
Away from home for less than 10 hours £5.
Away from home for more than 10 hours £10.
Earlier than normal start, add £5 for breakfast.
Working later than normal, add £15 for evening meal.

newly Self employed,what can I claim - https://www.electriciansforums.co.uk/threads/newly-self-employed-what-can-i-claim.123038/page-2

 

[plugsandsparks]

EIM30240 - Employment Income Manual - HMRC internal manual - GOV.UK - https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim30240

Its a tricky area, the scale rates are to help companies not expose employees to additional IC and NI through paying them too much for subsistence. I am an employee and charge my company according to the spirit of what HMRC are trying to achieve whilst not exposing me to high food costs when i am travelling.

If i am working locally i.e. within an hours travel each way, even if its a different location everyday and often multiple locations, then i dont claim subsistence. If i am travelling to some sites that are much further away and i am out all day using the motorway network so stuck with high prices for a sandwich then i claim subsistence below or at the scale rate whatever is lower.
Hope that helps

 

[snowhead]

The best way is to use an Accountant, they'll save you their fee and far more.

As an employee I get Mobile workers allowance, the 10 hr £5 and £10.
BUT in order to be eligible for it you have to keep acurate records of start finish times using a system approved by HMRC. We log onto an App.

 

[Leesparkykent]

Hi Majid Khan....Any particular reason you are posting under this account name and not your usual? Which account would you prefer to keep open? Regards Lee.

 

[Deleted member 26818]

Basically, any worker whether employed or self employed can claim for travel and substance to a work place which is not their usual place of work. For a period no longer than two years.
An exception to this would be if the contract of work was for a set period of time (i.e. if the worker was employed for two weeks as cover for someone on holiday).
Construction sites by their nature are temporary.

Benchmark rates are rates set by HMRC, which if used mean that receipts are not required to be kept and produced (this does not mean that receipts cannot be kept and produced to claim greater amounts).
If you opt to use the Bencmark rates in any tax year, you cannot also use receipts to claim higher greater amounts.

Travel would either be by public transport and claimed by using receipts, or by private vehicle using either receipts for fuel or the Benchmark rate which includes a cost towards fuel, maintenance, repair, insurance, vehicle excise duty, etc.

Subsistence is dependant on time away from home.
For a period between 5 and 10 hours the rate is £5, over 10 hours the rate is £10.
If you have to start earlier than normal the early rate is £5 in addition to Any other rate claimed for that day.
If you work late, the late rate is £15 in addition to any other rate claimed for that day.
As such if your normal work times are between 07:30 and 16:30 and your travel time is 3 hours, you can claim £10.
If you are asked to start work at 06:00 on a particular day, you can claim £15 (£5 early rate & £10 day rate). You can claim this even if you leave work earlier than normal (at 15:00 perhaps).
The late rate can be claimed if you are asked to work late on a particular day.
The maximum you can claim for any one day is £30.
This does not apply to shift rota changes (i.e. if you rotate working days and nights).

Personally, I claim in full for phone and internet, along with computer and phone related accessories, despite personnel use. The cost is the same whether there is personnel use or not.
I also claim for cost of my Passport as I am required to produce either it or a copy when registering with agencies or occasionally on site at induction.
I claim for any courses that I take in relation to work, IPAF, PASMA, Abrasive Wheels, SSSTS, 2382, 2391, JIB/ECS card, etc.
I would also claim for any work related annual subscriptions such as the IET membership or NICEIC membership.
I also claim for a weekly service wash at a Launderette for my work clothes.

 

[Majid Khan]

Basically, any worker whether employed or self employed can claim for travel and substance to a work place which is not their usual place of work. For a period no longer than two years.
An exception to this would be if the contract of work was for a set period of time (i.e. if the worker was employed for two weeks as cover for someone on holiday).
Construction sites by their nature are temporary.

Benchmark rates are rates set by HMRC, which if used mean that receipts are not required to be kept and produced (this does not mean that receipts cannot be kept and produced to claim greater amounts).
If you opt to use the Bencmark rates in any tax year, you cannot also use receipts to claim higher greater amounts.

Travel would either be by public transport and claimed by using receipts, or by private vehicle using either receipts for fuel or the Benchmark rate which includes a cost towards fuel, maintenance, repair, insurance, vehicle excise duty, etc.

Subsistence is dependant on time away from home.
For a period between 5 and 10 hours the rate is £5, over 10 hours the rate is £10.
If you have to start earlier than normal the early rate is £5 in addition to Any other rate claimed for that day.
If you work late, the late rate is £15 in addition to any other rate claimed for that day.
As such if your normal work times are between 07:30 and 16:30 and your travel time is 3 hours, you can claim £10.
If you are asked to start work at 06:00 on a particular day, you can claim £15 (£5 early rate & £10 day rate). You can claim this even if you leave work earlier than normal (at 15:00 perhaps).
The late rate can be claimed if you are asked to work late on a particular day.
The maximum you can claim for any one day is £30.
This does not apply to shift rota changes (i.e. if you rotate working days and nights).

Personally, I claim in full for phone and internet, along with computer and phone related accessories, despite personnel use. The cost is the same whether there is personnel use or not.
I also claim for cost of my Passport as I am required to produce either it or a copy when registering with agencies or occasionally on site at induction.
I claim for any courses that I take in relation to work, IPAF, PASMA, Abrasive Wheels, SSSTS, 2382, 2391, JIB/ECS card, etc.
I would also claim for any work related annual subscriptions such as the IET membership or NICEIC membership.
I also claim for a weekly service wash at a Launderette for my work clothes.

Thanks for that, really helpful.

 

[Octopus]

You should get an accountant to do it this year, then use his guidance and do it yourself next year

Or

Get the accountant to do it every year

 

[123]

I don't see why a sole trader that's not VAT registered can't handle their own self assessment and tax affairs...it's pretty simple stuff generally.