When you’re working as a contractor or freelancer in the UK, you might have heard about this thing called IR35. It’s a bit tricky, but let’s break it down in simple terms, especially the expenses part!
What’s IR35?
IR35 is like a set of rules from the tax people (HMRC) in the UK. It helps decide if you’re an employee or working like one. If you fall inside IR35, it means HMRC sees you more like an employee than self-employed. That affects how you pay taxes.
Inside IR35 Expenses:
Now, about those expenses! When you’re inside IR35, you might think, Can I still claim stuff back? Yes you can so there are some tips you might be able to claim:
Travel Expenses:
Train or Bus Tickets: If you have to travel for work, buying tickets could be claimed.
Mileage: If you drive for work, keep track of your miles. You might claim a bit of money back for each mile.
Accommodation Costs:
Hotels or Airbnb: If you’re away from work and need to stay somewhere, those costs might be claimed.
Equipment Expenses: Laptops, Tools, or Uniforms: If you buy stuff just for work, like a special laptop or tools, you might claim some of that back.
Training and Development: Courses or Training: If you’re learning new skills for your job, those costs could be claimed too.
Professional Fees: Accountant or Legal Fees: If you pay someone to help with your work taxes or contracts, those fees might be claimed.
Things to Remember:
Receipts: Keep all your receipts! They’re like proof that you spent money on these things.
HMRC Rules: Double-check what HMRC says. The rules might change, so it’s smart to stay updated.
Records: Write down all your Inside IR35 expenses and keep them organized. It helps when it’s time to claim. That’s not something you can claim either if you travel for personal reasons.
Not Everything Can Be Claimed:
Sadly, not everything you spend money on for work can be claimed. Some things are a no-go zone, like:
Personal Costs: Stuff you buy for yourself, not related to work, can’t be claimed.
Non-Work Travel: If you travel for personal reasons, that’s not something you can claim either.
Wrapping Up:
So, inside IR35 expenses, you can still claim some expenses! Remember to keep those receipts safe, know what’s allowed, and keep records tidy. It’s not that hard It’s like a little puzzle, but once you figure it out.
Always a good idea to talk to an accountant or tax expert if you’re unsure. They’re the real heroes in navigating the IR35 maze!
Working inside IR35 might seem a bit confusing, especially with expenses, but you’ve got this! Keep track of what you spend for work, follow the rules, and you’ll be a pro in no time.
Keep learning and keep rocking your freelance or contractor life!
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