A: You will be liable to income tax on your profit for the year, this is calculated after deducting allowable business expenditure. Business expenditure can include all travel costs from the office to clients premises, business telephone, internet, electricity, staff entertainment and other miscellaneous office costs. If your office is also your home you may be able to claim a portion of private expenditure that relates to the business, for example private internet or landline used for business purposes. Tips to reduce your tax bill: Make sure you claim tax relief on qualifying medical expenditure. You may be able to make a pension top to reduce your liability (This will have to be paid before tax deadline in order to qualify for relief).
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