Are you claiming all of your expenses?
Sole traders – are you remembering to claim all your expenses?
A recent YouGov poll revealed that nearly 3 out of 4 of small business owners don’t claim back all their expenses and more than 20% claim less than half or none at all.
A common reason given by respondents is that most expenses were too small to bother with or took too much administrative time and effort to claim. But this can be a potentially costly mistake. In fact, if you do it right you can save up to 20p on every £1 you earn against your tax bill.
How to claim what is rightfully yours
If you are not VAT registered and have a smartphone (available for both iPhone and Android phones), we’d like to introduce you to a new free app. 1Tap Receipts is an easy and accurate way to record expenses on the go. All you need to do is photograph your receipts on your mobile phone. It will then process it and update the expense part in the Self-Assessment form for you and save the images in the cloud for six years for HMRC records. Carpenter Box will also be able to see those expenses when they finalise your personal tax return.
You can also submit train tickets, parking tickets, invoices, etc. and will soon be able to email receipts too. You will just directly forward all of the online purchases, job invoices and plane tickets that are emailed to your inbox, and 1Tap will process them for you.
You can download the 1Tap app here.
Keep your accounts up to date
Keeping on top of your records will also be of benefit to you once HMRC’s new digital personal tax accounts are introduced. HMRC are moving towards sole traders submitting their accounts on a quarterly basis. You will be ahead of the game as the software will mean your accounts will be relatively up to date.
If you would like further information about 1Tap and cloud accounting, please get in touch with our cloud accounting team on 01903 234094.