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A guide to business tax rebates

Tax rebates are a particularly varied resource to make use of. From claiming back on general utility bills, to using services such as Brian Alfred to claim back on uniform costs, there’s a lot that can go into knowing what you’re eligible to claim for and how the process can work, so this short guide to tax rebates can help clear the air and save you money in the long term.

Why should I apply for tax rebates?

When running a business, it might be easy to see things in a more black and white sense – a case of money in versus money out, and operating the business with that mindset. Reducing costs where possible and trying to increase income where possible too.

However, many of these business expenses could well be made cheaper through the use of tax rebates, meaning business owners are left with more disposable income to funnel back into the business and lead to greater success overall.

Even if the expenses are in the past, and you’ve only just thought to look into tax rebates, you’ll still be able to claim back. For example, a business might have spent money at the start of the year upgrading old infrastructure by investing in some new equipment. In this case, the business might be advised to claim it back through the government’s annual investment allowance, which helps reduce the impact of what might otherwise be a huge expense.

Whether you’re a business owner or employee, make sure you keep accurate records of any business expense. This will help make sure that you can categorise exactly what you’ve spent and make the process of reclaiming tax far simpler each time you do so.

What sort of things can I claim back on?

Essentially, ‘tax rebate’ is a catch-all term for a wide range of expenses that can be claimed back on. Most things that can be considered a business expense are claimable.

For example, if you’re an employee who has had to pay out of pocket for a business-related expense, you’re more than likely eligible for a rebate. Perhaps you’re a self-employed construction worker who has paid for laundering of their uniform’s PPE, or you’re a mechanic working for a business who has replaced some old tools which might have broken.

Other possible expenses that you could consider business expenses may include:

  • Travel costs to clients or new worksites, including costs for temporary worksites

  • Insurance costs like public liability, which protects you as a business and employee

  • A business phone, which means less money needs to be spent liaising with clients

You can even claim back on things such as industry journals and magazines, as they can be considered a way to keep yourself at the forefront of your industry as a training resource.

The variety of things that can be claimed on is why applying for tax rebates can be such a useful tool for lowering the amount of money both business owners and employees have to pay out of pocket.

Even hiring employees can be made less stressful through the use of tax rebates. For example, you might be a self-employed business owner, who is at the point where an additional employee is needed to take on more work.

You can reduce the cost by up to a maximum of £3,000 by claiming back on National Insurance. This means that hiring staff to take on more work doesn’t have to be as daunting as you might be expecting.

Even the employees themselves stand to gain on tax rebates in relation to their monthly wage. Whether it’s through HMRC’s automated annual calculations, or through a manual application using the HMRC Gateway, employees could receive hundreds of pounds back in accidentally paid tax, which may occur if they have only worked through part of a tax year, or have accidentally been allocated the wrong tax code.

No matter who you are in a business’s hierarchy, tax rebates can benefit you and help leave you with more money in your pocket when the process is said and done.

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