If you’re a plumber working as a Sole Trader in the UK, it can be a little confusing when it comes to your Self Assessment with the HMRC and knowing exactly what you can and can’t claim back as expenses. Here are top 5 tax tips to help you with exactly that.
1. Tools and materials
Nuts, screws, bolts, and screwdrivers, all these can easily be lost while fixing a sink or installing a few pipes. While they are almost impossible to find after you complete your job, not all is lost. By claiming back these tools and materials as expenses, you are able to replace some of these lost items through tax savings. And how much are you able to save? Well, if you invest £2,000, you will save £800 in tax.
It’s considered close to impossible to put back paste or glue in its’ tube. But what if you could, in a way? You save £50 in tax when you invest £250 in consumables, if you claim them as expenses. And they said it can’t be done.
3. Protective clothing
By dealing with potentially toxic material while working, you often put your health at risk. Having the correct protective clothing, such as high quality gloves, is crucial. But, this clothing often comes at a high price. Well, through tax savings you might be able to afford that new pair of overalls. If you invest £150 in protective clothing, you will be able to save £30 in tax.
Avoid being yet another plumber who relies solely on word-of-mouth advertising. Attract new customers, increase your reach, and become the top search result in your region. By investing £200 in advertising, such as facebook and google ads, you will not only save £40 in tax, but also increase your customer base.
In the case of an accident, the last thing you want to worry about are the costs connected to it. By investing £150 in insurance, not only your mind and thoughts will be put to ease, but also your bank account, since you save £30 in tax if you claim insurance as a business expense.
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.