The short version: Expenses are costs you can deduct from your income to reduce your tax bill. What you can claim depends on how you earn your money and what the expense was for.
Self employment expenses
If you’re self employed, you can deduct genuine business costs from your profits. Things like equipment, software, travel, professional fees, and a proportion of home costs if you work from home. The expense needs to be wholly and exclusively for business.
Rental property expenses
Landlords can deduct costs like repairs, letting agent fees, insurance, and some mortgage interest from their rental income. There are rules around what counts, especially for mortgage interest which now has restricted relief.
Flat rate options
Sometimes it’s simpler to claim a flat allowance instead of tracking every receipt. You can claim the trading allowance for small self employment income, the property allowance for small rental income, the rent a room scheme if you’re a live in landlord, or mileage allowance instead of actual vehicle costs.
Using flat rates means less paperwork, but you might be better off claiming actual expenses if your costs are high.
Not sure what you can claim or which method works best for you? Ask us and we’ll point you in the right direction.
