The short version: Tax deductions are expenses you can subtract from your income before calculating tax. They reduce your taxable income, which means you pay less tax.
Who can claim them?
Self employed people can deduct business expenses. Employees can sometimes claim unreimbursed work expenses. Landlords can deduct property expenses. The rules vary depending on your situation.
What’s the rule?
Expenses must be “wholly and exclusively” for business purposes. If there’s a personal element, you can only claim the business portion. HMRC is strict about this.
How do you claim?
Self employed people and landlords claim through Self Assessment. Employees with small claims can use form P87. Larger employee claims go through Self Assessment too.
What can’t you claim?
Personal expenses, clothing you could wear outside work, everyday food and drink, fines and penalties, and the personal portion of mixed use items.
Not sure what you can deduct? Ask us and we’ll help you claim what you’re entitled to.
