When it comes to tax time, no one wants to hand over more cash than they need to. Tradespeople, especially, have loads of opportunities to save a few quid – if you know where to look. That’s where we come in. Here are 10 tax deductions every sparky, chippy, plumber, or roofer should be all over.
1. Tools and equipment
Bought a new drill? Replaced a knackered ladder? As long as you’re using those tools for work, they’re tax-deductible. Keep those receipts safe, and don’t forget – it’s not just big-ticket items like power tools; even smaller stuff like hammers or tape measures counts.
2. Workwear and uniforms
If your job requires specific clothing, like safety boots or branded uniforms, the cost is claimable. Don’t get carried away, though – everyday clothing, even if it’s for work, doesn’t make the cut. High-vis jackets? Yes. Your favourite hoodie? No chance.
3. Vehicle expenses
Your van’s a workhorse, not just a ride. If you use it for business, you can claim for fuel, insurance, servicing, and even parking costs. If you’re also using it to nip to the shops or pick up the kids, you’ll need to work out the business-use percentage.
4. Mileage
No van? No problem. If you’re using your own car for work, you can claim mileage instead. The HMRC-approved rate is 45p per mile for the first 10,000 miles and 25p after that. Keep a log – it’s dull but worth it.
5. Phone and internet
We all know how much time gets spent on the blower arranging jobs or sorting suppliers. Your phone and internet bills can be partly claimed if they’re for work. Just like with your vehicle, only the business bit counts, so don’t go claiming the lot.
6. Training courses
Whether you’re sharpening up your skills or learning something new, the cost of training can be a deduction. The course has to relate to your current work, though. If you’re a plumber taking a tiling course, you’re golden. If you’re learning French, not so much.
7. Business insurance
Public liability insurance, tool cover, or van insurance? These are all essential for keeping your business ticking over and claimable on your tax return. Don’t forget to check your policies and make sure you’re not paying for cover you don’t need.
8. Office expenses
No, we don’t mean a fancy office with a view. Your home counts as an office if you’re using it to sort invoices, quotes, or admin. You can claim a flat rate of £6 a week or work out the actual costs of heating, electricity, and even a bit of rent. There’s quite a bit to work out here, so chat to us and we’ll help you out.
9. Advertising and marketing
Flyers, business cards, website hosting, social media ads – anything you’re doing to bring in new work can be deducted. Don’t overlook things like subscriptions to trade directories or lead-generating platforms, either.
10. Hire costs
If you’ve had to hire tools, plants, or equipment for a job, those costs are tax-deductible. That includes skips for clearing up a site. Just make sure you’ve got the receipts to back up your claims.
Why it matters
Missing out on these deductions means handing over more of your hard-earned cash to the taxman. That’s the last thing anyone wants. By keeping track of your expenses and knowing what’s claimable, you’ll have more money to reinvest in your business – or treat yourself after a long week.
If you’re not sure where to start, or you’re worried you might’ve missed something, that’s where we come in. At For the Trade, we specialise in making tax and accounting simple for tradespeople.
Give us a shout – we’ll make sure your tax return’s sorted and you’re not leaving any money on the table.