Limited Company Expenses
You can offset any legitimate business expenses you incur against your company’s Corporation Tax bill. But the rules are complicated, and there are many 'grey' areas you should be aware as a business owner.
Which limited company expenses can you claim for?
There are many types of expenditure you will incur whilst running a limited company, however which expenses can you legitimately claim against your company’s tax bill?
The tax treatment of professional subscriptions
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 to be a member.
How are broadband and phone expenses treated?
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? This is far less likely to […]
Claiming back pre-formation costs from your company
Startup costs 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 back once your limited company has been fully incorporated?
Company Car Tax – how does it work?
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. Buying a car via […]
Charity and sponsorship expenses via your company
There’s a lot to be said for making a charitable donation or sponsoring a local event or individual through your limited company. But how are such outgoings treated for tax purposes?
What is the 24-month travel expenses rule?
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.
Tax treatment of company hardware and software expenses
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? And how does HMRC differentiate a genuine business expense from one that benefits both the business and the individual?
The tax treatment of medical and health expenses
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. […]
What are ‘trivial benefits’ and how are they treated for tax purposes?
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? Trivial benefits aren’t actually anything new as […]
Can you claim the cost of work clothes on expenses?
Regardless which sector or industry you work in, everybody has version of a ‘work wardrobe’, whether this is a version of their everyday look, a set of uniforms, personal protective equipment or a selection of suits or smart attire. Can you claim work clothes as an expense against your company’s tax bill?
Staff entertainment – the £150/head expenses exemption
If you provide entertainment benefits to staff, your company may need to pay Class 1A National Insurance of the value of such perks. You will also need to report the value of such benefits on each employee’s annual P11D form. However, there is one exception that you may not know about. HMRC’s £150/head staff party […]