To prepare your Self-Assessment tax return in respect of your self-employment income, we will require the following information for the tax year ending 5 April:
- Total Income – A summary of all income received from your self-employment activities. This may include sales invoices, till receipts, or platform reports (e.g. Etsy, Shopify, Amazon, etc.) depending on how your business operates.
- Business Expenses – A breakdown of your allowable business expenses. These should be itemised and summarised by category.
- Details of Capital Expenditure – If you have purchased equipment, tools, vehicles, or other assets for use in the business, please provide details including the date, cost, and intended business use.
- Business Mileage Records – If you use a personal vehicle for business purposes, please provide a log of business mileage travelled during the year.
- Use of Home for Business – If you work from home, please let us know so we can calculate an appropriate deduction. Specifically, we will need to know the total number of rooms in your home, excluding kitchens, bathrooms and hallways. Then, of those rooms, how many hours per day are they used for business purposes.
- Any Other Relevant Information – Such as trading start/cessation dates, changes in business structure, or government support received (e.g. SEISS grants).
The “Wholly and Exclusively” Principle
When claiming expenses, it is important to remember that only costs incurred wholly and exclusively for the purpose of your trade are allowable for tax purposes. This means the expense must be incurred entirely for the business and not have a dual personal purpose. For example:
- Allowable expenses:
- Office supplies (e.g. stationery, printer ink)
- Advertising and marketing
- Accountancy fees
- Business insurance
- Travel expenses for business purposes (excluding commuting)
- Subscriptions to professional bodies relevant to your trade
- Non-allowable or partially allowable expenses:
- Clothing that is not protective or branded (e.g. general office attire)
- Meals on regular working days (unless part of necessary travel)
- Personal use element of phone bills or utility costs
We will review the details you provide and apply this principle to ensure all valid expenses are claimed while maintaining compliance with HMRC guidelines. If you are unsure about whether a cost is deductible, we are happy to advise further.