Make sure you don't miss out on tax reliefs and allowances

HM Revenue and Customs (HMRC) is encouraging business owners, employers and the self-employed in Warwickshire to check online to make sure they are not missing out on a range of tax reliefs and allowances.

HMRC’s new GOV.UK page summarises items that customers running their own businesses should explore as they could help them keep more of what they earn. At just one click, businesses, employers and the self-employed can find out their eligibility for tax reliefs and financial allowances, as well as how to claim them.

These include:

Tax deductible business expenses

• If you’re self-employed, you can deduct some of your running costs as part of your annual tax return, as long as they’re an allowable expense.
• You may be able to claim tax deductible expenses for items including office stationery, insurance, bank charges and even heating and lighting for your office, home office or business premises.

Research and Development (R&D) tax credits

• If your company is involved in innovative projects in science or technology you may be eligible to claim R&D reliefs, which can even be claimed on eligible unsuccessful projects.

Gift Aid

• Companies (and unincorporated associations) can claim tax relief for qualifying donations paid to charities (bodies or trusts accepted as charities for UK tax purposes).

Business rates relief

• Some properties are eligible for discounts from the local council on their business rates.

Corporation Tax relief

• You can deduct the costs of running your business from your profits before tax when you prepare your company’s accounts. This could include things like buying machinery or tools that you use for your business.

Employment allowance

• If your business employs people you may be able to claim Employment Allowance which allows eligible employers to reduce their annual National Insurance liability by up to £5,000.

Pre-Trading expenses

• If you are in the process of setting up a new business, you may be able to claim back some of the expenses you incurred before you started trading through your first tax return.

Reclaiming VAT

• If you are a VAT registered business you can reclaim VAT on qualifying goods and services you buy for use in your business.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “Now, more than ever, we need to ensure that everyone is benefitting from the full range of support available to them and claiming what they are legitimately entitled to.

“We want to make it as easy as possible for customers in the West Midlands to identify the reliefs and allowances they’re entitled to and to claim them - it could make all the difference to a business at a time they need it the most.”

Federation of Small Businesses (FSB) National Chair Martin McTague said: "We know that some smaller firms struggle to navigate the tax system and get the help they are eligible for. We welcome the new HMRC one-stop-shop which should help more small business owners and the self-employed access the various reliefs that they deserve.”

For customers who need to complete a Self Assessment return, HMRC’s business advice page provides simple links to support and guidance available: including an online tool to check if you need to complete a tax return; what documents you need to complete your Self Assessment; payment options as well as links to a range of support for people who are worried about paying their tax bill to access help.

Additional online tools and guidance are available to help customers check if they are eligible for each service – as well as extra support to guide them through the application process. Business owners need to be aware of the risk of scams. Check HMRC’s advice about scams on GOV.UK.