Expense deductions as Self-Employed IT Consultant?

Question

Hi all,
I recently became self-employed and registered as such with HMRC. What I would like to know now is if there is a definitive list somehwere that shows me what I am allowed to deduct as expenses etc whilst working in the IT field. I have looked at the HMRC documents but it is not clear. Is there a site that I can visit or would I have to pay an accountant before submitting my tax return?
Thank you.

Answer 1

Any expense that you incur which is "Wholly, necessarily, and exclusively" incurred as part of your business.

Answer 2

As Fengirl says the test for deductibility is "wholly and exclusively".

The nearest thing to a list of allowable deductions I can suggest is to have a look at the notes to the self employed pages of the tax return (SA100). I've put a link below to the 2006/07 version.

Note that this is HMRC's view only and that special circumstances may mean that you can claim for something the notes suggest is not allowable,, but it is a good general guide.

Answer 3

There is no definitive list as all business are different and you run your business in the way you want. The rules state that you are allowed a deduction for all expenses incurred wholly and exclusively for business purposes. Mainwool - the necessarily bit only relates to employees - its up to the business owner to decide what is necessary for their business.
Easiest way to make sure you dont miss anything is to open a business bank account and make sure all your business income and expenditure goes through that.

Answer 4

If I were you, I'd go round to your nearest tax office, they're pretty helpful these days.