There are many great things about being a freelancer, the freedom of being your own boss, the flexibility to work whenever and wherever you desire, the opportunity to spend more time with loved ones and friends.
However, one of the downsides is managing your own finances, and you might find yourself surprised by the toll on your income that business expenses can take. Luckily, you can claim tax deductions on many of these to help soften the blow – here are some of the most important ones to remember.
1. Home Office Expenses
Working from home? Did you know that you can claim for a portion of your costs such as household bills? If the thought of working out how much of your home is used for your business sounds daunting, you can choose simplified expenses – a quick and easy way for home workers to save money.
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2. Mobile Phone Bill Expenses
Even if, like most people, you use your mobile for both business and personal calls, you can still claim for a portion of your bills. However, unlike household costs, you’ll need to keep track of which are work-related – so it’s important to hang on to those old bills.
3. Travel Expenses
Use a vehicle regularly for work? Again, you can use the simplified method to calculate your expenses based on mileage, rather than keeping track of all the individual costs, make sure you read the government's guidelines. Similarly, don’t forget to keep the receipts for any work-related train or bus travel, as all of these costs can be added to your claim.
4. Education Expenses
Got your eye on a course that will really boost your business? Want some training to help you get to grips with a new innovation? As long as you can provide receipts and explain how the education benefits your role, you can claim reasonable expenses for these costs – and even those relating to textbooks and training materials. Checkout Freelancing Hacks for some course ideas.
5. Miscellaneous Expenses
Finally, don’t forget that all the little things add up. Whether you’re forking out for office stationery or posting documents internationally, make sure you keep track of all your freelancer expenses – you might be surprised how much they total at the end of the business year. Especially if you're paying for things like marketing subscriptions, you can read our guide on those here.
Feeling overwhelmed by everything you need to keep on top of? Don’t panic! Our Expend app lets you pay for, track and monitor all of your expenses in real time – making it fast and easy to calculate your claims. Plus with our Expend business account, you can get an Expend card in your pocket and working for you tomorrow, with our next business day delivery.