What are business miles?
If you own/rent a separate business location away from your home, the cost of travel between your home and business location is not allowable, as this is considered ordinary commuting. Travel between your business location and other locations where work is performed is an allowable expense.
For this to be true, a contractor who frequently travels to a work location to receive instructions from a supervisor and is then returned to another location must not have incurred any travel expenses.
It is possible for a contractor whose home serves as their business base (they may occasionally work or store business records, materials, and tools there) and who works at a variety of different sites throughout the year to be classified as an 'itinerant' trader. Generally, they should be reimbursed for travel expenses between their home and those locations.
If you still have any confusion, you can always get in touch with contractor accountants in London.
Utilising one's residence as an office
When a room in the home is used for business purposes, the additional costs associated with the business use, such as light/heat, may be deducted. This means that when a portion of the home is being used for business purposes, that portion of the home is being used exclusively for business purposes at the time.
Thus, if the portion of the home used for business purposes such as invoice creation is also used for non-business purposes, such as watching television, no deduction is required.
If you use a portion of your home exclusively for business purposes for a period of time, you can deduct the costs associated with that portion.
You cannot deduct expenses incurred in purchasing or constructing your business premises. If you operate your business from home, you can deduct a portion of your home utility bills; however, you must determine the percentage of your home that is used for business purposes and the percentage of the month that it is used for business purposes.
In certain circumstances, you may be able to claim a portion of:
Taxation by the Insurance Council
Interest on mortgages
Rental fees and repairs/maintenance
Cleaning
Heat, light, and energy
Broadband/landline service, which includes a portion of the line rental
Cheap accountants in London will help you to analyze your deductible and nondeductible business expenses
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