Accounting for electricians

What Taxmo does for electricians

Income and expenses in one place

Record what you earn and spend in categories, and see your profit and what to set aside for tax as you go. On every plan.

Receipt scanning

Photograph a receipt or forward it on WhatsApp, and Taxmo reads it into an expense for you to check. On Starter and Pro.

Connect your bank

Connect your bank read-only or upload a CSV statement. Each transaction waits for your approval before it counts. On Starter and Pro.

Invoices and quotes

Send quotes and invoices from the same records, and see which invoices are still unpaid. A few a month on Free, without a cap on Starter and Pro.

Mileage log

Log business journeys and Taxmo applies HMRC's approved mileage rates for the tax year, including the lower rate once you pass the annual mileage band.

Reverse charge invoices

Mark an invoice line as reverse charge and the invoice shows the rate, charges no VAT and states that your customer accounts for it.

VAT returns, once you are registered

Taxmo works out the nine boxes from your approved entries, shows where each figure comes from and files the return to HMRC over Making Tax Digital. On Starter and Pro.

Capital allowances

Keep a register of the assets you claim capital allowances on, with the annual investment allowance and writing down allowances worked out for each. On Pro.

Expenses electricians commonly claim

Materials

Raw materials and the direct costs of the work you sell. Anything bought for private use is not allowable. Source: https://www.gov.uk/expenses-if-youre-self-employed/reselling-goods

Equipment you keep

Equipment you keep and use in the business is claimed as an allowable expense if you use cash basis accounting, or through capital allowances if you use traditional accounting. Source: https://www.gov.uk/expenses-if-youre-self-employed/office-property

Van running costs

Fuel, insurance, repairs and servicing, vehicle tax, breakdown cover and parking for business journeys. Or use the flat mileage rate instead of actual costs, unless you have already claimed capital allowances on the vehicle. Source: https://www.gov.uk/expenses-if-youre-self-employed/travel

Protective clothing

Protective clothing your work needs, such as safety boots or hard hats, and overalls that protect your own clothes. Everyday clothing is not allowable, even if you only wear it for work. Source: https://www.gov.uk/expenses-if-youre-self-employed/clothing

Business insurance

Any insurance policy for the business, for example public liability insurance. Source: https://www.gov.uk/expenses-if-youre-self-employed/legal-financial

Training

Courses that improve skills you already use in the business or keep you up to date with your industry. Training to start a new business, or to move into an unrelated area, is not allowable. Source: https://www.gov.uk/expenses-if-youre-self-employed/training-courses

Trade body membership

Membership of a trade body or professional organisation related to your business, and trade or professional journals. Source: https://www.gov.uk/expenses-if-youre-self-employed/subscriptions

Rules worth knowing

The Construction Industry Scheme

If you work for a contractor in construction, you may need to register for CIS as a subcontractor. The contractor takes a deduction from each payment and passes it to HMRC as an advance payment towards your tax and National Insurance. Registering means a lower deduction than not registering, and some subcontractors can apply for gross payment status. Source: https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor

VAT domestic reverse charge

If you are VAT-registered, most building and construction services between VAT-registered businesses that are reported under CIS use the domestic reverse charge: your customer accounts for the VAT instead of paying it to you. Some services supplied on their own are excluded, so check the list on GOV.UK. Source: https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services

Common questions