As a freelancer and contractor, there are various expenses which you will incur which you can claim back. You simply pay for the expenditures with your own money and then the client will compensate them back to you- but what can you claim for?
There are various costs outside of IR35 which can be claimed back before taxes are applied, so in effect they are tax deductible. These include;
- Telephone business calls
- Inheritance tax
- Travel Expenses
- Stamp duty
- Corporation Tax
- Accommodation Costs
- Pension premiums
- National Insurance
HM Revenue & Customs state that such allowances can be claimed as long as they are exclusively for the purpose of business. Now such expenses vary considerably but Nixon Williams can help you with our detailed rates and allowance guide that can show you exactly what you can claim back.
As an expert accountancy firm, we offer professional information for contractors to fully understand what you can and cannot claim for. And because we specialise in the IT sector we know all the kind of allowances that you will occur. We have the accredited qualifications and professional acumen to fulfil your necessities.
So what kind of expenses can IT contractors claim?
You can claim meal costs whilst you are working away from your normal place of work or when staying away from home overnight.
You can claim the cost of travel to and from your temporary workplace with mileage allowance payments if the car is personally owned. You cannot however claim for parking fines or speeding fines. Any travelling via public transport can be claimed but needs to have a valid receipt.
If you need to stay overnight in a hotel or bed and breakfast, this can be claimed back as an expense. Accommodation can be redeemed but the cost must be reasonable.
You can claim back any technical costs for new equipment, machinery or books and magazines related to the IT sector. So if you have had to buy a new keyboard, or system, this can be reimbursed.
For more in depth information on what you can and cannot claim, get in touch with us today via our live online support chat feature, email or simply give our friendly team a call. We are the leading accountants that specialise in the IT sector.
Why Choose Nixon Williams?
At Nixon Williams our aim is to assist in making your contracting life easier by removing the stress normally associated with accounting, taxation and other financial issues experienced by contractors.
Each of our clients are provided with a single point of contact that will be on hand to assist with any accountancy or tax related queries.
We invest a large amount in people; indeed 98% of our accounting staff having either completed or are studying towards one of the following qualifications: ACMA, ACCA, CTA, ATT or AAT.