We understand that going through HMRC’s website can be like pulling teeth, here are some expenses that construction workers can use to reduce their profits and therefore tax liability.
Always remember to keep your business receipts, whether you keep the physical receipt or take a picture on your phone your receipts are important, this is your evidence of expenses in case you are ever investigated by HMRC.
MOTOR VEHICLE COSTS
If the vehicle you use is only for business use, then you can use your fuel receipts, insurance, road tax and vehicle maintenance costs.
For example, if you have a van, all the fuel you put in the van is an allowable expense, keep your fuel receipts. This will be one of your most repetitive expenses.
UNIFORM / CLOTHING / PROTECTIVE CLOTHING
If you have purchased your own uniform, with your business name or brand displayed on the clothing you can claim this expense. However, your standard clothing, trousers, t-shirts etc. CANNOT be used as a business expense.
Protective equipment clothing can be claimed as an expense, for example work boots, hi-viz clothing, gloves, hard hat etc.
Laundry of work clothes can be claimed – you don’t need any receipts to prove laundry. The amount you can claim is £60 per year.
TRAVEL AND SUBSISTENCE
Costs of travelling, eating and staying overnight at a temporary site. If you are working away from home and are in digs, any cost you have to pay yourself can be used as a business expense, unfortunately the 4 pints of Madri / Strongbow / Guinness each night will not be allowed! Your accommodation, travel and food bills whilst working away will be allowable though.
TOOLS AND EQUIPMENT
All equipment and tools purchased for work purposes can be used as a business expense even your long weight and tartan paint.
ADMIN AND OFFICE COSTS
Being self-employed means you may incur some other costs that you can use as business expenses. For example stationery, postage costs, printer ink, phone, broadband.
PROFESSIONAL FEES
Paying other businesses for support is also normal when self-employed, your insurance, accountancy fees (including our fee), solicitors, and bank fees are all allowable.
MARKETING & ADVERTISING
Any costs related to promoting your business is allowable – posters/flyers, business cards, advert in paper, boosting a post on Facebook, paying for online advertising all can be used.
CAPITAL EXPENSES
Your capital expenses are generally the more expensive and longer lasting items you purchase. These are categorised as plant and/or machinery.