Most people are blissfully unaware of the tax breaks for the self employed. In the UK the majority of people work for someone else and have tax deducted at source under the PAYE regulations and, as a consequence, they are severely disadvantaged.
The majority of people do not realise that it is perfectly permissible to have two sources of income. Anybody can be both employed and self employed at the same time, in fact many people are.
So long as you have established the “Intent To Trade For Profit”, then irrespective of the number of hours that you put into your self employed business, your tax payable each year becomes based on the aggregate total income, net of allowable expenses, from all sources.
What this also means, is that in the early stages of your new start up self employed business, if your expenses exceed your income, you will have created a trading loss and that trading loss can be set against your income from employment, entitling you to a refund of tax paid under PAYE.
This is incredibly powerful, particularly so because once you have a self employed business, whether part time or full time, there are loads of expenses that you are already incurring every month for which you cannot claim any tax relief as an employee, but which are allowable deductions when you have a self employed business.
This is the HMRC overview of the type of expenses that can be claimed against income from self employment:
Tax Breaks For The Self Employed
Tax breaks for the self employed include:
- office costs, including stationery or phone bills
- travel costs, including parking, train or bus fares
- clothing expenses, including uniforms
- staff costs, including salaries or subcontractor costs
- things you buy to sell on, including stock or raw materials
- financial costs, including insurance or bank charges
- costs of your business premises, including heating, lighting, business rates
- advertising or marketing, including website costs
To put this into perspective, what this means is that once you have created your own part or full time self employed business, then expenses including your mobile phone, your landline, the cost of broadband, the costs of a website and hosting, travelling expenses that can be attributed to your self employment, the costs of your motor car, including road tax, insurance, servicing and repairs, and even the costs of maintaining a room in your home as an office, all of these costs that you were previously incurring, and for which you could claim no tax relief as an employee, they all become legitimate tax deductions from your income from self employment, from day one…
…this is huge and is one of many reasons why people are looking to take full advantage by setting up a home based part time business to both supplement their incomes and to leverage the cash benefits of all of the tax breaks for the self employed.
Just think what this might mean to you…
Phone bills, broadband, website and hosting and a small proportion of your household bills fairly attributable to the room in your house designated as your home office. What might all that come to each month? (And that’s not including your car and/or travelling costs).
It’s not hard to see costs of £300 to £400 pm, that you are currently incurring, that henceforth become tax deductible and, depending on your effective tax rate, being able to claim these costs back will mean a tax refund of anything from £60pm to £160pm, just for getting started as self employed.
Tax Breaks For The Self Employed Home Business Owner
In most pure MLM businesses, can you see that any monthly autoship, up to these levels, is in fact funded by the tax repayments due from HMRC? So getting involved actually costs the participant zero, with a great upside.
So where that autoship includes a product with real tangible value, then that product comes into your ownership for free. Where that product is solid gold, with its proven track record as a store of wealth, that is a massively powerful proposition that needs to be shared.
Within our community we advocate that people leverage this knowledge to start to collect solid gold. If that’s some thing that you feel might be of interest to you, please visit Legacy Gold in the first instance and complete step one.
If you have any questions at all, please comment below and we’ll get back to you as quickly as possible.