Calling all small businesses, freelancers and consultants: how vigorously do you calculate your expenses claims? No I’m not talking about over-claiming; quite the contrary, I’m talking here about all those small expenses which many of you seemingly don’t even bother to put on your expenses forms.
Research amongst micro businesses, freelancers and sole traders by accounting software provider FreeAgent has revealed that only 39% claim all allowable expenses, with 20% not bothering to claim any expenses. Across the survey the main ‘culprit’ seems to be those expenses which come in at under £10 and are therefore seen as not worth claiming back.
However, if these findings were extrapolated across the small business economy it would amount to some £250 million worth of unclaimed expenses, equivalent to unclaimed tax relief of some £50 million (assuming basic tax rate only). The headlines at the moment may be very much at the other end of the tax spectrum, but if the U.K.’s smaller businesses are the backbone of the economy, they cannot afford to simply hand money over to the Treasury unnecessarily.
If you would like to speak to a tax adviser about taxation for smaller businesses and freelancers, please contact Newshams Tax Advisers on 0800 211 8657 or email us at firstname.lastname@example.org.