Friday, 28th February, 2025
As a business owner, keeping track of expenses is essential for managing cash flow and reducing your tax liability. Knowing what you can claim as a business expense ensures you take full advantage of tax deductions while staying compliant with HMRC regulations. In this post, we'll break down the common business expenses that you can claim.
1. Office Expenses
Expenses related to running an office are typically allowable, including:
-Rent and utilities (electricity, water, and gas)
-Office supplies (stationery, printing costs, postage)
-Business phone bills and internet costs
-If you work from home, a portion of your household bills may be deductible.
2. Equipment and Technology
Purchases that support your business operations are claimable, such as:
-Computers, laptops, and printers
-Software and subscriptions necessary for your business
-Office furniture (desks, chairs, storage units)
3. Travel and Transport
If you travel for business, you can claim expenses for:
-Mileage for business-related travel (using HMRC’s mileage rates)
-Public transport fares (trains, buses, taxis)
-Accommodation and meals for overnight business trips
-Personal travel costs, however, are not deductible.
4. Employee Salaries and Benefits
If you employ staff, you can deduct:
-Wages and salaries
-National Insurance contributions
-Pension contributions
-Training and development costs
5. Professional Fees and Services
Hiring professional services to support your business is also claimable, including:
-Accountancy and bookkeeping fees
-Legal fees related to business operations
-Business consultancy services
6. Marketing and Advertising
To grow your business, you may invest in:
-Website development and maintenance
-Social media advertising and online marketing
-Printed materials (business cards, flyers, brochures)
-Networking events and sponsorships
7. Business Insurance
Protecting your business is crucial, and expenses for the following insurances can be claimed:
-Professional indemnity insurance
-Public liability insurance
-Employers’ liability insurance
8. Training and Development
Courses and training programs that enhance your business skills or benefit your employees are allowable expenses.
9. Stock and Raw Materials
If you sell products, you can claim expenses for:
-Raw materials used to produce goods
-Stock purchased for resale
10. Subscriptions and Memberships
Memberships that benefit your business can be deductible, such as:
-Trade associations and professional bodies
-Industry-related magazine subscriptions
What You Cannot Claim
While there are many allowable expenses, some costs are not tax-deductible, including:
-Personal expenses
-Client entertainment and hospitality
-Non-business-related travel expenses
Final Thoughts
Understanding business expenses can help you save money and ensure compliance with tax regulations. If you're unsure about what you can claim, Pro Tax Plus Accountants can help you navigate your tax obligations and maximise your deductions.
Need expert guidance? Contact us today to discuss how we can help with your business finances.
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