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.

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