‘Leave it to me, I’ll put this on expenses!’ ‘My accountant claims for everything’ “It’s okay, I’ll put it on the business” These must be the top 3 most uttered claims of all time when it comes to business expenses… And often heard at a post work meeting, near a bar… Sound familiar??? … After all, who doesn’t want to maximise their tax reliefs and allowances! Truth is, the rules are quite strict when it comes to what is allowed as a fair and reasonable business expense. If you want the lowdown on this… Read on… Limited company expenses – what’s the deal? You can only put expenses through your business if they are WHOLLY, EXCLUSIVELY and NECESSARILY incurred. This means the expense must relate to the business and business-related activities and hasn’t been classed as disallowable by HMRC. We know, it’s a more stringent test than you would think. But still, there is an upside… The list of expenses that you CAN offset against your corporation tax bill is substantial, providing lots of opportunities for you to make a claim. Some are more obvious than others but fear not, we have produced a handy guide for you – look here, it might be a surprise to see what you can claim. The list below is an overview of the most common tax-deductible expenses that are likely to crop up in your business on a day-to-day basis.
- Business travel and accommodation
- IT costs and software
- Mobiles, telephones and broadband
- Postage and stationery
- Accountancy fees (of course, worth every single penny )
- Rent or use of your home as an office