SLW Accountancy Limited

Tax season can feel like a headache, but for contractors and roofers, it’s a golden opportunity to maximise profits by claiming the deductions you’re entitled to. In this guide, we’ll walk through the main expenses you can claim, from mileage to materials, and even working from home. By understanding what’s deductible, you can lower your taxable income, keep more money in your pocket, and feel confident you’re doing it all legally.

Why Tax Deductions Matter

Every deduction reduces your taxable income, which in turn lowers the amount of tax you owe to HMRC. For contractors, expenses can stack up quickly—fuel, materials, subcontractor costs, even tools and gear. The key is knowing what counts as a deductible expense and keeping track of everything.

Common Tax Deductions for Contractors

1. Use of Home as Office If you’re running your roofing business from home, you can claim a portion of your household expenses, including:
   • Mortgage interest or rent
   • Utilities (gas, electricity, water)
   • Internet and phone bills
   • Property insurance

HMRC allows contractors to claim either a flat rate based on the number of hours worked at home or a portion of actual costs. This can be significant for contractors who handle admin, quotes, and invoicing from their home office.

2. Mileage and Vehicle Expenses Driving to and from job sites, supplier locations, or client meetings? Keep track of your mileage and claim it as a business expense. There are two ways to claim vehicle expenses:
   • Mileage Allowance Relief: If you use your personal vehicle, you can claim 45p per mile for the first 10,000 miles and 25p per mile thereafter.
   • Actual Vehicle Expenses: Alternatively, if you use a business vehicle, you can claim actual costs like fuel, insurance, repairs, and maintenance.

Note that if you use your vehicle for both personal and business trips, you’ll need to keep records and claim only the business portion.

3. Tools, Equipment, and Protective Gear As a roofer or contractor, you rely on quality tools to get the job done. Fortunately, you can claim the cost of any tools or protective gear (PPE) required for your work. This includes:
   • Hand tools and power tools
   • Ladders, harnesses, and safety gear
   • Hard hats, gloves, steel-toed boots, and high-visibility clothing

These deductions can add up, especially if you’re investing in durable, high-quality tools that will serve you over multiple projects.

4. Materials and Supplies Materials form a large part of your expenses, and thankfully, they’re fully deductible. Any materials you purchase specifically for a job—such as tiles, timber, cement, nails, and insulation—are legitimate business expenses. Just remember to keep all receipts and record the materials used for each job.
5. Subcontractors and Labour Costs If you hire subcontractors or additional labour to complete a job, those costs are deductible. Keep detailed records of payments to subcontractors, including invoices and dates of work completed. This can save you a lot of money at tax time, especially if you regularly bring in additional help on big projects.
6. Marketing and Advertising The cost of promoting your business is also deductible. Whether you’re paying for online ads, flyers, or branded workwear, you can claim these expenses as part of your tax deductions. A well-placed ad or a professional website can help you bring in more clients, and claiming these costs can make investing in marketing even more appealing.
7. Phone and Internet Costs Many contractors rely on their phones and internet to communicate with clients, order materials, and handle invoices. If you use your phone or internet for business purposes, you can claim a portion of those bills as a business expense. Just keep track of business versus personal usage, as HMRC requires an accurate record of the business portion.
8. Training and Professional Development Investing in training, certifications, or new skills can make you a more competitive contractor. Any course fees or books related to enhancing your skills as a roofer or contractor can be deducted. Plus, if you attend trade shows or industry events, you may be able to claim travel and entry costs too.
9. Insurance Premiums Contractors and roofers rely on several types of insurance—public liability, tools and equipment insurance, and professional indemnity insurance. Premiums paid for these policies are deductible, as they’re necessary to protect your business.
10. Professional Fees and Memberships Membership fees for professional organisations, like the Federation of Master Builders, can be claimed as business expenses. Additionally, if you work with an accountant to help manage your finances, the cost of their services is also deductible. Keeping your finances in order is essential, so take advantage of this deduction!
11. Interest on Business Loans and Finance Payments If you’ve taken out a loan to finance business expenses (such as purchasing a vehicle or new tools), you can deduct the interest payments on that loan. Additionally, any financing fees associated with asset purchases may be deductible. This can reduce the effective cost of financing your business’s growth and equipment upgrades.
12. Rent and Utilities for Business Premises If you rent space specifically for your business, you can claim the rent, utilities, and any maintenance costs as business expenses. For contractors with a workshop or dedicated storage unit, this can be a substantial deduction.

Tips for Maximising Your Deductions

• Keep Detailed Records: HMRC requires you to maintain accurate records of all deductible expenses. Use cloud accounting software or dedicated apps to track mileage, receipts, and invoices as you go.
• Separate Business and Personal Finances: Open a separate bank account for your business to make tracking expenses easier. Mixing personal and business finances can complicate things, making it harder to claim deductions accurately.
• Plan Purchases Wisely: If you’re nearing the end of the tax year and plan to buy new tools or materials, consider purchasing them before the new tax year starts to maximize your deductions sooner.

Stay Compliant While Saving More

Maximising deductions is perfectly legal as long as you follow HMRC’s rules and only claim legitimate business expenses. Working with an accountant who understands the roofing and contracting industry can be a big help, ensuring that you claim every eligible expense without crossing any lines.

By understanding the deductions available to you and tracking your expenses carefully, you can significantly reduce your tax burden and keep more of your hard-earned money. Don’t leave potential savings on the table—make sure you’re claiming everything you’re entitled to!

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If you’re looking to make the most of your deductions or need help with your business finances, reach out. I specialise in helping contractors understand their numbers and make their businesses more profitable. Let’s make tax season a little less painful and a lot more profitable!