Self-employed taxpayers may be failing to claim on average £1,687 in tax-deductible expenses, a new report has revealed.
Which?, the consumer publication, said failing to claim all of your expenses when submitting your tax return could cost you a “hefty sum”.
The report has been published ahead of the 31 January 2019 self-assessment deadline.
According to Which?, taxpayers on average could claim £600 for their fuel expenses, saving £120 on their tax bill (or £240 for a higher-rate payer). Likewise, phone costs, car servicing, car insurance and use of the home office could amount to £450, £303, £126 and £208 respectively.
If none of the above expenses were claimed, Which? suggests that taxpayers could be overpaying by an average of £355 on their tax bill if they are basic-rate payers.
What’s more, if you own a business premises, taxpayers can claim on costs for heating, lighting, cleaning, water rates, rent, business rates and general maintenance, adding up to significant savings.
The Institute of Chartered Accountants in England and Wales (ICAEW) recently warned self-employed workers not to leave their tax return “to the last minute”.
Anita Monteith, ICAEW Technical Tax Manager, estimates that some 5.5 million have yet to file their annual self-assessment return ahead of the 31 January 2019 deadline.
She added that those leaving their tax return until the very last day risk automatic penalty fines.
For urgent help and advice completing your tax return, please get in touch with our expert team.