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Submit your 22/23 Tax Return Before January 31st

Submit your 22/23 Tax Return Before January 31st

January 31st is the deadline for submitting 2022/23 tax returns. It's a good idea to complete your tax return ahead of this deadline to avoid mistakes and potential penalties. This article shows why its a good idea to submit your tax return early and how Earnr can help you if you are stuck.

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What can you expense
as a sole trader or side hustler?

The best way to reduce your tax bill is to include all your business spending on your tax return. So with that in mind, we built the Earnr expenses database to help you do that!

Top expenses
to declare

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Accounting Fees
You can expense the fees charged by an accountant to prepare your accounts. Or to process your tax return. This includes Earnr.
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Ads
You can expense anything you pay towards advertising or marketing your side business. This includes the cost of activities like market research or free samples.
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Banking fees
You can expense up to £500 in fees or interest you paid to your bank in running your business. Most sole traders are unlikely to go above this allowance.
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Business gifts
Most gifts up to £50 (that you buy for customers) are tax-deductible. The gift must include direct advertisement for your business to be tax-deductible.
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Allowable?
Risk level?
Possibly 🟡
Low risk 😃
Clothing (e.g. merch)
You can expense the cost of merchandise that clearly advertises or promotes your side business. The clothing you wear to work could also be expensed.
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Allowable?
Risk level?
Possibly 🟡
Medium risk 🙂
Devices
Any device that you purchase for the business can be wholly expensed if it is to be used solely for your business (e.g., laptops, computers, phones).
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Allowable?
Risk level?
Possibly 🟡
Medium risk 🙂
Insurance
Costs incurred to insure your business assets and/or operations may be tax deductible, depending on the purpose.
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Allowable?
Risk level?
Possibly 🟡
Medium risk 🙂
Legal fees
You can expense any legal fees you incur in running your business. This includes things like registering a trademark or applying for a patent.
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Meal deliveries
You can't expense delivered meals such as Deliveroo or Uber Eats that are consumed at your house or 'normal' place of work.
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Allowable?
Risk level?
Possibly 🟡
High 😰
Mortgage interest
If you work from home, rent or mortgage costs can be claimed as part of HMRC's flat rate, so how much you can expense will depend on hours worked from home.
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Allowable?
Risk level?
Possibly 🟡
High 😰
Office and decorative items
You can expense purchases that make your office or workspace a more suitable place to work. This includes essentials and some smaller decorative items.
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Allowable?
Risk level?
Possibly 🟡
Medium risk 🙂
Office or workshop
Renting space is an allowable expense - e.g. renting a desk at WeWork or access to a pottery studio. Creating new space usually cannot be expensed.
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Allowable?
Risk level?
Possibly 🟡
High 😰
Parties and team events
If you have employees, you can expense the cost of staff events (often referred to as staff entertainment).
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Allowable?
Risk level?
Possibly 🟡
Medium risk 🙂
Platform fees
Charges by third party websites that list your product for sale and/or connect you to customers can be claimed as expenses in your tax return.
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Postage and packaging
You can expense any postage and packaging costs you pay as part of your business. This applies to raw materials you receive and finished products you send out.
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Raw Materials
Costs incurred to purchase raw materials (sometimes referred to as direct materials) used in making your products can be expensed.
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Rent
If you have a separate business premise, rent costs can be expensed. If you work from home, your rent will most likely be captured as part of HMRC's flat rate.
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Allowable?
Risk level?
Possibly 🟡
Low risk 😃
Software product
Costs incurred by your business in the set-up or ongoing use of software or apps can be expensed (e.g. the cost of using earnr to manage your finances and tax).
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Subscriptions
If you pay subscription or membership fees to approved professional or trade bodies that are directly related to your business, these can be expensed.
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Allowable?
Risk level?
Possibly 🟡
Low risk 😃
Tools
Tools bought for business use can be expensed. If the tool is also used for personal use, only the portion of use that relates to your business can be expensed.
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Training and coaching
Training and coaching courses that are directly related to your business are allowable expenses. They are applicable to many different individuals.
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Allowable?
Risk level?
Allowable 🟢
Medium risk 🙂
Travel
Expenses you incur when you travel for business can normally be expensed if you're a sole trader. This does not include costs of travel between home and work.
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Utilities
If you have separate business premises, you can claim the full cost of utilities for that space. If you work from home, you may expense a portion of your bills.
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Allowable?
Risk level?
Possibly 🟡
Low risk 😃
Website
The various costs that are incurred when you set up and run a website for your business can be claimed as expenses (e.g., hosting costs and domain name costs).
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
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