Offsetting your costs against tax

You can offset the cost of materials such as paper, ink cartridges, postage etc. against tax and, of course, capital expenditure such as PCs, desks and filing cabinets.

Keep receipts of everything you purchase and record all your income and expenditure. Suggested formats for recordkeeping are illustrated in Figures 14 and 15.

There is a number of useful leaflets available from the Inland Revenue and your tax inspector will be prepared to advise you or you may prefer to engage an accountant. Shop around to establish how much you are likely to be charged and remember, accountancy costs can be offset against tax and will prove to be a very worthwhile expense when your work really begins to take off.

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