Freelancers miss out on tax cuts

Freelancers miss out on £24m in tax cutsAnalysis shows that freelancers are missing out on at least £24m a year in tax breaks, with the majority of the 5m self-employed people allowed to deduct certain work-related costs from profits before paying income tax failing to take advantage of the benefits. The study, by accounting software firm Freeagent, shows that almost 80% do not claim business expenses that could be refunded. Around two in three freelancers do not claim back expenses of less than £10, while a third do not deduct the cost of food when travelling for work and nearly a fifth fail to declare money spent on accommodation. Ed Molyneux of Freeagent advises that small purchases can soon add up, calculating that if a self-employed person buys a coffee a day when visiting clients it equals an unclaimed £49 a month, adding “all of a sudden you have lost out on £585 in one year.”