What exactly constitutes business expenses? There are many items that someone who works from home can reclaim in order to avoid paying tax on them. However be warned, there are many things that you can’t claim for and the authorities will challenge anything that they think is questionable. Some occupations will incur more expenses than others, say for example, a painter and decorator will spend more on equipment than a person who works as a freelance writer. Take our questionnaire and find out if you are getting back what is rightfully owed to you. Remember that you can only claim back the entire cost of an expense from your business if it is specifically for that business. Also remember that you MUST keep any receipts of items that you have purchased so that you can submit them on your self assessment forms.
1. Can you claim for plant and machinery when working from home purchased? This includes cars, vans, computers and tools.
- a) No.
- b) Yes.
- c) I don’t know.
2. Can you claim fuel expenses for non business related travel?
- a) Yes.
- b) No.
- c) I don’t know.
3. Can you claim for hospitality and entertainment?
- a) No.
- b) Yes.
- c) I don’t know
4. Can you claim for depreciation of fixed plant, ie, wear and tear and aging?
- a) Yes.
- b) No.
- c) I don’t know.
5. Can you claim without a receipt?
- a) Yes.
- b) No.
- c) I don’t know.
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6. Can you claim for postage?
- a) Yes.
- b) No.
- c) I don’t know.
7. Can you claim expenses such as heating and lighting usage on rooms in your home that are not used for business?
- a) Yes.
- b) No.
- c) I don’t know.
8. Can you claim mileage on business related travel when using your own car?
- a) Yes.
- b) No.
- c) I don’t know.
Points are given like this:
1. a) 1 b) 3 c) 2
2. a) 1 b) 3 c) 2
3. a) 3 b) 1 c) 2
4. a) 1 b) 3 c) 2
5. a) 1 b) 3 c) 2
6. a) 3 b) 1 c) 2
7. a) 1 b)3 c) 2
8. a) 3 b) 1 c) 2
Add up the scores from your answers.
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