What expenses can you really claim on your tax return?
Business owners large or small can incur a wide range of workplace expenses, from postage stamps to the purchase of a new computer. But how do you know which expenses will count as a tax-deductible claim?
In short, you are only allowed to claim on your tax returns for expenses that have been incurred wholly and exclusively for the running of the company – the purchases cannot be for partial personal use.
What kind of expenses are you allowed to claim?
Here are a few examples of the most common tax-deductible business expenses.
Typical expenses incurred by a Limited company could include:
- Executive pension contributions
- National insurance contributions (NICs)
- The cost of subsistence while away from your workplace
- Accommodation costs when away from the normal place of business
- Travel and parking costs, including mileage allowance if using your own vehicle
- Training course fees
- Stationery, postage, and printing costs
- Business insurance
- Company formation and ongoing costs
- Telephone and broadband packages
- Mobile phones and Smartphones
- Home office costs
- Computer equipment and software
- Costs of advertising and marketing your business
- Business gifts up to £50 per individual are allowable before more complex rules apply
- Authorised bank charges
- Professional fees, such as an accountant
Remember: To prove that your claims are legitimate, it’s important to keep all your receipts and invoices for purchases and expenses throughout the year.
If you are unsure of how business tax obligations apply to your company or need more advice on managing tax returns and company expenses, please get in touch and Clear Vision’s team of professional accountants can assist you.
Located in the Romsey, the team at Clear Vision are well-known for their ethos, prioritising a customer focus, honesty, clear communication and personal service. Friendly, open and communicative, Clear Vision provides a personal and transparent service to all of our clients. We understand the unique financial needs of each individual and offer tailored solutions that tackle their concerns and enable them to plan for the future.