When calculating your taxable trading profits, you can deduct certain expenses from your income to arrive at your taxable profit. Here are some examples of allowable trading expenses:
Business premises expenses: You can deduct the cost of renting or running a business premises, such as rent, rates, heating, lighting and repairs.
Travel expenses: You can deduct the cost of travel for business purposes, such as fuel, parking, public transport and hotel stays.
Staff costs: You can deduct the cost of salaries, wages, bonuses, pensions and employer's National Insurance contributions.
Office expenses: You can deduct the cost of running an office, such as stationery, postage, telephone bills and internet costs.
Advertising and marketing: You can deduct the cost of advertising and marketing your business, such as website design, business cards and flyers.
Professional fees: You can deduct the cost of hiring professional services, such as accountants, solicitors, and consultants.
Stock and materials: You can deduct the cost of buying stock or materials that you use in your business.
Bad debts: You can deduct the cost of debts that you have been unable to recover.
It's important to note that you cannot deduct any personal expenses or expenses that are not related to your business. Also, if an expense is partly for business and partly for personal use, you can only claim the business part.
It's a good idea to keep accurate records and receipts to support your expenses, as HM Revenue and Customs (HMRC) may ask to see evidence of your income and deductions. If you're unsure about which expenses you can claim or need help with your tax return, you may want to consider consulting a tax professional or accountant.
