[ɪksˈpɛnsɪz]
Expenses can potentially be deducted from earnings in order to pay less tax. They are especially important for the self-employed and rental income individuals.
Expenses are the costs incurred by an individual or organisation in the course of running their operation. It is essential to monitor and record expenses as they are key to profitability, and it may be possible to claim them against earnings in order to pay less tax.
Self-employment and rental income are the two most common forms on income that involve claiming expenses, but it may be possible for other forms of income too.
In some cases, flat or fixed allowances may result in paying less tax rather than claiming expenses. It also simplifies the process as you don't have to manage and keep expense receipts.
There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.
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Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.
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