The number one question we are asked is "can I claim for *insert item here*?".
The sure-fire question to ask is - is the expense incurred wholly, exclusively and necessarily for business use? If your answer is yes, then it is an allowable expense.
Here is a summary of common expenses you can claim for through your business:
Accountancy costs including bookkeeping fees.
Advertising, publicity, brochures, photographs, business cards and flyers.
Agents commission.
Bank charges (contact us to obtain free banking).
Books.
Casual labour.
Computer equipment and associated accessories e.g. USB memory sticks, external hard drives, and software fees.
Data protection registration fees.
Entertainment – staff entertainment is allowable against taxable profits however client entertainment does not allow for tax relief.
Work wear if necessary for safety, PPE or if company branded. Cleaning costs of allowable work wear is allowable too.
Gifts to charity/ local good causes and gifts to customers costing up to £50 and bearing the business name.
Heat, light and power - the amount allowable is related to to space used for business.
Hire or lease of equipment.
Hotel costs when travelling away from home.
Insurances.
Interest payable on business loans.
Legal fees.
Motoring expenses can include (these vary depending on personal use and for Ltd Companies):-
- Breakdown cover.
- Car hire.
- Car repairs, servicing, MOT.
- Motor insurance.
- Parking, tolls and ferries.
- Fuel.
Postage and courier fees.
Use of Home - allowable elements must be exclusive for business use can include:-
- Cleaning.
- Rent and rates.
- Repairs and maintenance.
Pension contributions.
Postage, printing and stationery.
Tools.
Staff welfare including a Christmas party allowance.
Subscriptions to professional bodies.
Subsistence - you are allowed to claim the cost of all your meals (and drinks) when on overseas engagements. Only claim the cost of the evening meal when on business in the UK and daytime meals incurred on business travel (itinerant).
Subcontractors.
Telephone - allowable portion directly related to business use:-
- Landline.
- Internet.
- Mobile.
Training for staff.
Travel - all business travel costs are allowable including:-
- Train.
- Taxis.
- Flights.
- Bicycle repairs and maintenance, consumables and insurance.
- Inoculations.
- Travel cancellation fees.
- Travel insurance.
- Visas.
Use of home as office allowance.
Wages and salaries of staff.
Website costs.
The expenses your business incurs will relate to your business activity, and so will vary from business to business. It would also be impossible to list out all possibilities but we hope you find the list above to be extensive and helpful! Please contact us for further guidance on anything you are unsure of.
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Equal Accountancy Ltd offers Accountancy and Bookkeeping services in Hemel Hempstead and surrounding areas across Herts, Beds and Bucks. We offer a range of services for Limited Companies, Self-Employed individuals and Landlords including Year End Accounts, Corporation Tax returns, Self-Assessment Tax returns, Payroll services, VAT returns, Bookkeeping and Company Secretarial. Get in touch today for a free, non-obligatory quote for your business needs.