How do I include financing costs in my tax return when self-employed?
As a sole trader, reporting self-employed income on your tax return, you can include up to £500 of financing costs as tagged expenses.
These can include:
- bank, overdraft and credit card charges
- interest on bank and business loans
- hire purchase interest
We use the cash-basis for accounting which enforces this £500 limit.
Please note, if you're a landlord looking to include financing costs on your tax return the rules are different, take a look here.