Allowable expenses list for freelancers published
One of the bugbears of self-employed freelancers -- constantly having to work out what’s eligible as a business expenses and what’s not -- has been squatted by a list of allowed items.
Divided into eight parts, the list is preceded by an overview which makes clear it is aimed at sole traders, as opposed to those who work for themselves via their own limited company.
Before exampling and explaining each of the eight, which include office costs like stationery, travel costs like train fare, and marketing costs like website fees, a common issue is tackled.
“If you use something for both business and personal reasons,” says HMRC, the list’s compilers, “you can only claim allowable expenses for the business costs.”
Sole traders using the ‘cash basis’ scheme and the ‘simplified
expenses’ method are also covered by the list, which is backed up by the
Revenue’s Self-Assessment helpline, aimed at freelancers who are still unsure
whether a business cost is an allowable expense.