Tax return anxiety is very real and with over 12.5K TikTok posts offering advice, it’s clear many are turning to unverified content for reassurance.
With this in mind, experts at Nottingham Accountants Archimedia Accounts sought to debunk some misleading tax advice.
The most misleading tax advice and what you should be doing:
- You can claim anything as a work expense if you just say it’s for work
Most people can’t claim everyday purchases as work expenses just because they use them at work or say they’re work-related. Tax deductions must be directly tied to earning your income and not just vaguely associated with your job.
Chris Demetriou, co-founder of Archimedia Accounts, states: “Unless the expense is necessary, work-specific, and backed by proper records, it’s considered a personal cost and not deductible.”
“Trying to claim things like your daily coffee, new clothes, personal laptop, or even a new car as a “work expenses” without clear justification is a red flag. When in doubt, keep personal spending and business claims clearly separated. You could incur serious fines or even legal consequences if you try to claim personal spending.”
- Personal and lifestyle costs are deductible for entertainers and influencers
Many influencers and entertainers assume they can write off clothing, beauty treatments, meals, or holidays simply because they post about them online. But tax authorities draw a clear line between personal lifestyle choices and genuine business expenses.
Demetriou asserts: “Only expenses that are completely and exclusively for business, like a photoshoot, sponsored travel, or advertising cost are likely to be deductible. If something has a dual purpose (e.g. clothes you wear daily), it’s usually not claimable, even if it appears in content.”
- You can deduct gambling losses
Most people can’t deduct gambling losses because gambling is seen as a hobby, not a profession. Claiming losses against your income without being a registered, professional gambler then you will incur consequences.
With this in mind Demetriou reinforces: “Unless you’re a professional gambler operating as a business (which is rare and difficult to prove), losses are considered personal and not tax-deductible. Keep your gambling and taxes completely separate.”
- You don’t need to declare income from side gigs or freelancing
It’s a common myth that if you earn a small amount on the side, say, through tutoring, freelance work, or online sales, you don’t need to report it. But all income, no matter how casual or irregular, must be declared.
Chris Demetriou, adds: “Keep track of all earnings, even if it’s “just a side hustle.” In many countries, there’s a small earnings threshold you may fall under before tax kicks in but you still need to report it. If you try to evade income tax then you could face a six month prison sentence and a fine of up to £5,000”.You don’t have to pay tax if you’re paid in cash
Being paid in cash doesn’t mean the money is tax-free. It still counts as income, and failing to report it is considered tax evasion.
“Always keep records of your income, including cash jobs. You’re expected to declare all income sources regardless of the payment method. Cash is just a form of payment not a tax loophole. As an employee, you may be paid in cash. However, you should always receive a payslip and your employer should still take off the right amount of income tax and hand this over to HMRC.”
“It is important to check this is in order, as HMRC will still demand income tax from you later in certain circumstances. You may also lose out on benefits if your employer does not pay over NIC to HMRC”, Chris said.
- Forming an Ltd means you can deduct personal expenses
Some people think starting a limited company is a clever way to claim personal costs like rent, meals, or fuel. But fabricating a business purely for tax deductions is fraud.
“You can only claim deductions if you’re running a legitimate business with real income, clients, and activity. Setting up a shell business to funnel personal expenses is illegal and will likely attract an audit.”
“If you are struggling to keep track of expenses then you should consider making use of accounting software, annual account spreadsheets, and electronic recording systems that will help you update and manage all the relevant information and documents”. affirms Chris Demetriou.
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If your friend or family member does your tax return, you don’t need to worry about mistakes
Even if someone else prepares your tax return, you’re still legally responsible for everything in it. If they make a mistake or even fudge the numbers, you’re the one the tax office will pursue.
Chris Demetriou, stresses: “Only trust someone who’s qualified and experienced with tax matters. Review your return carefully before submitting it, and make sure you understand what’s being claimed on your behalf. If you have made a genuine mistake then HMRC will treat it as such and there is unlikely to be any penalty imposed as long as the underpaid tax is paid”.