Limited Company Expenses
You can offset any legitimate business expenses you incur against your company’s Corporation Tax bill. But the rules are complicated. Here are our most popular guides.
- Limited Company Expenses List – the main allowable expenses.
- Capital Allowances – how to offset capital costs against tax.
- Company car tax – buy a car, or use your own and reclaim costs?
- Pre-Formation Costs – from before you started the business.
- Telephony Expenses – tax treatment of phones and broadband.
- Health Expenses – medical costs, gym, annual check, insurance.
- Computer Costs – hardware and software expenses.
- Subscriptions – memberships to professional organisations.
- Charitable Expenses – giving to charity and sponsorship-type costs.
- 24 Month Travel Rule – important info if you’re a professional contractor.
As anyone who has started their own business knows, it can be a costly exercise with a range of expenses to absorb before you’re officially up and running. The bills can quickly add up and typically, these have to be paid from your personal funds. The question is: can you claim any of these expenses
You may have considered purchasing a car via your own limited company. However, before you go ahead, you should consider the tax implications of using a company car for your own personal use, compared to the option of simply claiming back mileage costs of using your own car whilst on business.
One rule that is highly relevant to a limited company contractors in particular is the 24-month travel expenses rule. At a glance, it all seems pretty straightforward but when it comes to HMRC and allowable expenses, nothing is ever quite that simple.
Whether you work as a freelance contractor, director of a limited company or business owner, joining a trade association can help to keep you up to date with what’s going in your industry and be a useful forum for discussing new legislation, finding contacts, or sourcing work. Typically, you’ll have to pay an annual subscription
Computer hardware and software are two essential expenses for any modern business and costs can run into the thousands, but what can you legitimately claim for on your annual tax return? This type of business expense can often be a tricky area for contractors and freelancers, especially if you are installing new software or using
As a limited company owner, there are a number of expenses you can legitimately claim back from the business without being hit for tax. Many of these are easy to identify but one grey area is medical and health-related expenses, as some of these are considered as a benefit in kind (BIK) and deemed taxable.
They are two of the most common business-related costs, but how are broadband and phone expenses treated by HMRC, and how can you make sure they remain tax-deductible as a legitimate business cost and not be added to your personal tax bill at the end of the financial year?
Since the introduction of new rules in April 2016, employers can now provide so-called ‘trivial benefits’ to employees without having to declare these to HMRC. But what exactly are trivial benefits and is there a limit to how much they can cost before being considered a taxable benefit?