Self Employed Veterinarian? You may be wondering what tax deductions you can claim to reduce your tax bill..
Allowable expenses are defined as business expenses incurred wholly and exclusively for the purpose of your trade. As they have the effect of reducing your taxable profit it is important to make sure you have included them when you reach the end of a tax year or financial year since they will reduce the amount of tax you need to pay.
So, what can you actually claim for? Whether you are self employed or operate through a Limited Company, here are a few things which may help reduce your tax bill:
The membership fees and any licences you need to practice are fully deductible against your income, for example RCVS or even job related website subscriptions.
It’s a commitment staying up to date with the latest techniques and regulation changes. The costs of any courses, conferences, training and books are allowable against for tax purposes. If you do travel to attend a conference, take a note of the mileage or keep your travel card as these costs may be allowable too.
Workwear & equipment
If you have your own surgical equipment and scrubs, again as these are wholly & exclusively for your trade you can claim tax relief on the full cost of these items.
We are animal lovers don’t like to think of anything going wrong, but if you are required to have a form of liability insurance to practice as a veterinarian the full amount of your policy and the IPT are deductible.
Mileage and Travel
Depending on different factors, you may be able to claim the cost of travel or mileage when traveling for work. Mileage is currently claimed at 45p per mile for the first 10,000 miles and 25p thereafter. We suggest seeking advice from your accountant to establish whether or not you can claim for this against your tax. Keep a note of where you have been as well as any contract details, so they can check this for you.
Legal and Professional Fees
Costs of running your business and any advice you may need to take, such as accountants fees are again fully deductible. But your accountant will no doubt look to include these on your behalf!
You may need business cards as part of your networking and searching for your next contract. Again, keep the receipt because this all counts towards reducing your tax bill.
If you use your phone for work purposes, then you can make a claim for this against your tax. If your phone is used for personal use too, you may need to make an adjustment for this as the personal element would not be tax deductible. Just keep the bills, your accountant will be able to help you make the right deduction in your accounts.
Use of Home
If you happen to do some work from home or take time researching and training, you may be able to tax advantage of a tax relief to reflect the use of your own home. There is currently a £4/week flat rate deduction available. It isn’t a huge amount, but it is still helpful towards reducing your tax bill. Check with your accountant if you think this applies!
Our network of accountants suggest that if you are not sure whether an expenses is tax deductible to keep hold of the receipt to discuss with them when preparing your end of year accounts. And remember, always seek the advice of a fully qualified accountant to ensure you remain compliant.