If you’re a builder 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 5 top tax tips for items and services you can claim back as expenses.
Ahhh… you wouldn’t be a builder if you didn’t use any materials, right? Every time you purchase materials for a job, you’re saving money on your taxes. For every £6,000 you spend on materials, you could save £1,200 in tax.
2. Repair of Tools
It’s going to happen sometime, and when it does, make sure you’re prepared. If you have to spend £200 in repairing your tools you could be saving £40 in tax. Just make sure you keep all your receipts!
3. Trade Magazines
It’s always important to keep up to speed with what’s happening in your trade. Magazines are a fantastic way to not only spend some spare time, but also to discover new partners, tools, materials and more for your work. For every £50 you spend on trade magazines, you could claim back £10.
Why not put your name in the trade magazines? Or put your name out there on Facebook or Google with adverts? You need to get your name out there and promote yourself where you can, and you could be saving yourself £50 for every £250 you spend.
5. Protective Clothing
Whether you love it or hate it, PPE is a must-have for on-site work. The last thing you want is to sustain an injury and put yourself out of work. If you spent £150 a year on new Personal Protective Equipment, you could save yourself £30 in tax… that’s a round of beers for you and the lads at the pub!
So, there you have it. 5 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.