If you’re a professional driver working as a Sole Trader in the UK, there are many things you can claim back as expenses for your business. Every penny you claim as an expense means less tax you have to pay at the end of the year when you come to file your Self Assessment with the HMRC. Here are 6 top tax tips for items and services you can claim back as expenses.
Avoid awkward conversations and radio stations with poor choice of music. Higher rating is bound to happen if you are able to fulfill each passenger’s song request. Invest £120 in a yearly Spotify license, and save £24 in tax.
2. USB Charger
Despite batteries rising in capacity, mobile data, location and other features still burn through your smartphones life in a second. Invest £10 in a USB charger, be able to drive and work longer, and also save £2 in tax. That’s almost 2 liters of fuel.
3. Floor mats
A dirty interior leads to unsatisfied customers, meaning bad reviews and less requests. While washing and cleaning up can help, nothing replaces that new car look and smell. Invest £50 in new floor mats, and impress your passengers, while saving £10 on tax.
A broken taillight, bent door, and a scratch or two. All this can happen at a parking place, are usually caused by other people, and are “not your fault”. But what you can take the blame for is the £400 tax savings if you invest £2,000 in insurance.
5. Car wash
First impressions count. No one wants to get in a dirty car, especially with someone they do not know. A simply car wash can turn an ugly duckling into a swan, so make sure to invest £500 per year in cleaning your vehicle. You will look much better driving up the street and save £100 in tax while doing so.
Petrol expenses are unavoidable. You need it for your car to move, just like you need food and water. An investment of £6,000 for petrol a year is something you can put through your business, saving you £1,200 in tax.
So, there you have it. 6 ways to save money every year on your taxes if you’re a UK Sole Trader. And to make keeping track of all your expenses even easier, 1Tap Receipts exports all of the key data from a simple photo of your receipt meaning you’ll never have to type out another receipt again when claiming back expenses.