As A Self-employed Worker - What Can You Claim?
This one is for all the hustlers!
Are you a freelancer, side hustler, or gig worker trying to figure out how to make the most of your hard-earned cash while avoiding the taxman's grip? Well, you're in the right place! Let's break it down - what can you claim as a self-employed worker?
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What’s the Deal With Being Self-Employed?
Being self-employed is like being the boss of your own game. You get to set your own hours, do what you love, and ultimately, make the cash you deserve.
But, with great power comes great responsibility.
In the world of taxes, being self-employed means you're responsible for handling your own taxes and keeping records of your income and expenses.
See our guide around how much tax you pay on £500 a week.
What Can You Claim When Your Self-Employed?
When you're self-employed, you can claim business expenses as deductions on your taxes.
That means all the stuff you need to run your gig is fair game. So, whether you're a content creator, a graphic designer, or a coder, there are some industry expenses you can claim back:
Mileage
If you use your car for work, you can claim a portion of your car expenses, like petrol, insurance, and maintenance.
Home Office
If you work from home, you can claim a portion of your rent or mortgage, utilities, and internet as home office expenses.
Phone and Internet
A significant portion of your phone and internet bills can be claimed if you use them for work.
Equipment
Did you buy a new laptop, camera, or any tools for your work? Then you can claim those as well.
Software and Subscriptions
If you're using software or services essential for your work (like Adobe Creative Cloud or web hosting), you can deduct those costs.
Work Wardrobe
If you really need some new fits for your work, you can claim a portion of clothing expenses. Just remember it’s only if they're exclusively for work!
Meals and Entertainment
When you're wining and dining clients or networking for work, some of those expenses can be claimed.
Marketing and Advertising
Money spent on promoting your hustle is eligible too.
Self-Employment Tax
Now, this is a big one. When you're self-employed, you're responsible for paying both the employer and employee portions of taxes. But don't worry, you can claim the employer portion as a deduction.
Health Insurance
If you're self-employed and paying for your health insurance, you might be able to deduct those premiums.
Retirement Contributions
Planning for your golden years? Contributing to a self-employed retirement plan can reduce your taxable income.
Travel
If your gig requires you to travel, those expenses can be claimed too, but make sure they're all business-related.
Education and Training
Any courses or training that directly relate to your work can be deducted.
How Can Self-Employed Workers Claim?
To claim these deductions, you've gotta keep all your receipts and records.
Whether you're old school with paper receipts or all about that digital life, keep your financial records organised and safe. Trust us; it'll save you a world of pain come tax season.
Conclusion
Just keep in mind that tax laws will be different depending on where you live and the nature of your gig. If you’re unsure, consult a tax pro to navigate the ever-changing tax landscape.
And remember - paying taxes is essential for keeping society running, so don't shy away from your duty. But that doesn't mean you can't make the most of what's yours! Claiming your deductions and staying on top of your financial game will help you flex your financial muscles while staying on the right side of the law.
