{"id":28855,"date":"2020-02-11T16:33:07","date_gmt":"2020-02-11T16:33:07","guid":{"rendered":"https:\/\/www.clearbooks.co.uk\/blog\/?p=28855"},"modified":"2021-09-14T15:56:05","modified_gmt":"2021-09-14T14:56:05","slug":"do-one-thing-today-to-reduce-tax-tomorrow","status":"publish","type":"post","link":"https:\/\/www.clearbooks.co.uk\/blog\/do-one-thing-today-to-reduce-tax-tomorrow\/","title":{"rendered":"Do one thing today to reduce tax tomorrow"},"content":{"rendered":"\n

There\u2019s no greater grudge task than paying your tax bill. And whilst you can\u2019t avoid tax all together, you can minimise the amount of tax you pay. <\/p>\n\n\n\n

One of the easiest ways to reduce tax is by keeping track of every allowable expense. <\/p>\n\n\n\n

What are allowable expenses?<\/strong><\/h2>\n\n\n\n

Allowable expenses are the various running costs that, as a self-employed person, you can deduct from your revenue to reduce the tax you pay to HMRC. <\/p>\n\n\n\n

For example, if you made \u00a340,000 in income last year, and had \u00a310,000 of allowable expenses, HMRC will calculate your tax on the remaining \u00a330,000 of profit. It therefore makes sense to track as many allowable expenses as possible. After all, maximising your allowable expense claims will reduce the tax you pay.<\/p>\n\n\n\n

What purchases are \u2018allowable expenses\u2019?<\/strong><\/h2>\n\n\n\n

Here are some examples of allowable expenses;<\/p>\n\n\n\n