Contractor expenses you should be claiming

 In Contractors, Freelancer Tips

Ensuring you claim all your contractor expenses is crucial for running a profitable operation.

Those extra costs can quickly mount up, but most business expenses are tax-deductible providing the right documentation is in place to support them. However, this is also partly defined by your current IR35 status.

Let’s look at the expenses you should be claiming if your operations sit outside of IR35.

Typical contractor expenses outside of IR35

  • Gross salary – keep this low to maximise dividend payments and limit NI contributions
  • Accountancy costs (when established as a limited company)
  • Travel-related expenses – tickets, mileage and vehicle costs (if any)
  • Accommodation and subsistence – (when working in an alternative location)
  • Business telephony costs
  • Training and professional development costs – course fees, book/magazine subscriptions etc.
  • Company account-related bank charges and interest
  • Business insurance – contents, professional indemnity etc.
  • VAT on expenses – (when VAT-registered)
  • IT and business technology-related costs
  • Pension scheme – (when using a scheme approved by HMRC)
  • Life insurance – (when a relevant Life Plan is in place)

Use this comprehensive list to ensure you’re claiming for these contractor expenses fully, and keeping your tax bill as low as possible.

Or, try partnering with a specialist contractor accountant who can help you get to grips with your expenses allowance quickly and save you a stack of time and paperwork.

Get more expert accountancy advice for contractors. Call on 3 Wise Bears today

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