Accountants for Sole traders

Specialists Accountants for Sole traders

Starting out
Our specialist accountants are happy to assist you with the advice and Bookkeeping services. Our end to end service package has everything that you need to get a clear perspective of your business needs. It also includes expert advice on how to deal with HMRC correspondence and optimize tax planning.

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Accounting for Sole Traders

At GM professional accountants, we provide accounting services for sole traders that include preparation of tax returns for filing with the HMRC, calculation of tax liability, bookkeeping and preparation of annual accounts. Our business accountants in London are available to help ensure that you are compliant with legal requirements and that you are not subjected to penalties.

Which Expenses Can you Claim as a Self Employed Person?

Office Expenses

You can claim postage, printing costs (includes printer ink), and business stationery. You can also claim expenses such as computer software, printers, and computers as long as you do not use cash basis accounting and claim the expenses as capital allowances.

Business premises

Claimable expenses include security, property insurance, utility bills, repair and maintenance, and rent. You cannot claim any expenses that include building or buying the business premises.
If you run the business from home, you can claim utility bills but you will have to determine how much of the home is used for business purposes, and how much of the utility bills can be claimed as expenses for the business. If you work for at least 25 hours from home, you can claim business expenses under a flat monthly rate referred to as simplified expenses.

Travel

You can claim business-related van or car costs such as breakdown cover, servicing, repairs, hire charges, fuel, and vehicle insurance. Given the complexity, you can default to the flat rate provided by the government referred to as the simplified vehicle expenses. Other expenses you can claim include business travel by taxi, plane or train. You can also claim overnight expenses on business trips such as meals and hotel rooms.

You have to keep in mind that you can claim site visits and travel for business meetings among other expenses. However, you cannot claim travel expenses for traveling or commuting to the business premises. Also, note that if you combine business and personal travel you need to separate the business from the private costs before making any claims. Event hospitality and costs for entertaining customers, suppliers and clients are not claimable. Stock and materials You can claim the cost of raw materials and stock and any direct costs that need to be incurred in the
production of your goods.

Financial and Legal Costs

If your business needs the services of a professional such as an architect, surveyor, solicitor, or accountant for business purposes, you can claim that as an expense. You can also claim credit card, overdraft, and bank charges including leasing, purchase interest, business loan, and interest on bank payments. However, it is critical to note that using cash basis accounting means
that claims are capped at 500 on bank and interest charges.

Business insurance

You can claim business insurance costs that include professional indemnity insurance and public liability insurance, Check out our FAQ page for more information.

Marketing

Marketing costs such as website costs, free samples, mailshots, directory listings and newspaper advertising can be claimed as expenses.

Clothing

You can claim costs for costumes for entertainers and actors, necessary protective clothing, and uniforms. However, everyday clothing that you wear to work cannot be included as part of the business expenses.

Staff costs

Staff and employee salaries are claimable as well as employer National Insurance contributions, agency fees, benefits, pension contributions, and bonuses.

Subscriptions

You can claim the costs of subscription to professional membership organizations or costs of membership to trade bodies as long as they are relevant to the business you are in. You can also include subscriptions to professional and trade journals.

GM Professional Accountants have offices located in London, Manchester and Essex.