Despite what other self employed workers may tell you, there are things you simply can't claim as an expense.

We have listed the obvious ones below.

Personal use of vehicle

If you also use your vehicle for your personal use, then you need to factor this in when any expenses are claimed. For example, if you calculate that you use your vehicle 80% of the time for work, the App will reduce any relevant vehicle running expenses by 20% for your tax calculation.

Clothing

Only branded or protective clothing can only be deducted as an expense; E.g. the company or fleet you are working with requires you to purchase and wear a uniform or clothing with a company logo on it. A small cleaning cost of around £2 a week would be reasonable. Don’t forget that where a self-assessment return is judged to be incorrect and the amount of tax and NI underpaid as a result of an improper expenses claim, HMRC will pursue the lost tax and NI and will charge interest and additional penalties.

Don’t accept what other self-employed workers tell you they claim or how long they have been claiming for something – they just haven’t been caught yet!

HMRC are there to help, call them on 0300 200 3500 and ask them.

Food

Some accountants will tell you to claim expenses for meals; some then take that to mean all meals or sustenance. That is incorrect. The only time you CAN claim sustenance is when you're working away from home (on a business trip) and you can’t pop home to eat. This would not be a regular occurrence and would be more likely acceptable to HMRC.

You cannot claim your lunch every day.

Again, HMRC is there to help, call them on 0300 200 3500 and ask them.

Travel

You cannot claim for travel costs between home and work.

Fines

You certainly cannot claim fines - if you break the law, you pay - not HMRC.

Summary

You can "claim" ANYTHING you want as a business expense; until you are the subject of an HMRC Intervention. Then you're in trouble. HMRC can go back at least 7 years, to establish what you claimed previously. They will total up all the errors and you'll need to pay all these underpaid costs along with penalties and interest.

If you do your accounts properly, entering all your income and claimable expenses, you will never fear a tax intervention.