Are you Claiming all of your Business Expenses?

Most of us are really watching what goes in and what comes out atm and if you’re a business owner, we’d like to share our top tips on what you can claim for and save yourself a whole lotta dosh! Businesses can claim a wide range of expenses to reduce their taxable profit, thereby lowering the amount of tax they need to pay. These expenses must be incurred wholly and exclusively for the purpose of running the business. 

Here’s a detailed list of claimable business expenses:

1. Office Costs

• Rent: Costs for renting business premises.
• Utilities: Electricity, gas, water, and other utility bills.
• Office Supplies: Stationery, printer ink, and postage costs.
• Office Furniture: Chairs, desks, and other furniture items.
• Computer Equipment and Software: Purchase and maintenance of computers, laptops, and business-related software.

2. Travel Expenses

• Vehicle Costs: Fuel, parking, vehicle insurance, and repairs. For company cars, you can claim a proportion of the running costs.
• Public Transport: Train, bus, air travel, and other public transport fares for business trips.
• Accommodation: Hotel stays and other accommodation costs for business trips.
• Meals: Food and drink costs during business travel (subject to certain restrictions).

3. Staff Costs

• Salaries and Wages: Payments to employees, including bonuses.
• Employer’s National Insurance Contributions: Contributions made by the employer.
• Pension Contributions: Employer contributions to employee pension schemes.
• Training Costs: Costs for work-related training courses and materials.

4. Stock and Materials

• Raw Materials and Consumables: Items bought for resale or for manufacturing products.
• Direct Costs: Expenses directly related to the production of goods or services.

5. Marketing and Advertising

• Advertising: Costs for online ads, print media, billboards, etc.
• Promotional Materials: Flyers, business cards, and promotional giveaways.
• Website Costs: Hosting, domain registration, and website development costs.

6. Professional Fees

• Accountancy Fees: Costs for hiring accountants and bookkeepers.
• Legal Fees: Legal expenses for business-related issues.
• Consultancy Fees: Payments to business consultants and advisors.

7. Business Insurance

• Professional Indemnity Insurance: Covers legal costs and expenses in case of claims of professional negligence.
• Public Liability Insurance: Covers costs if someone is injured or their property is damaged because of your business.
• Employer’s Liability Insurance: Required if you have employees, covering employee claims for workplace injuries or illness.

8. Bank Charges and Interest

• Bank Fees: Charges for business bank accounts.
• Loan Interest: Interest on business loans and overdrafts.

9. Subscriptions and Memberships

• Professional Subscriptions: Fees for membership in professional bodies or trade associations related to your business.
• Publications: Costs of trade journals, magazines, and industry publications.

10. Premises Costs

• Maintenance and Repairs: Costs for maintaining and repairing business premises.
• Business Rates: Local government taxes on business properties.
• Security: Costs for security systems and services.

11. Utilities and Office Services

• Telephone and Internet: Costs for business phone lines, mobile phones, and internet services.
• Cleaning Services: Costs for cleaning business premises.

12. Other Allowable Expenses

• Research and Development: R&D costs can be claimed if they meet certain criteria.
• Bad Debts: Money owed to you that you are unlikely to recover.
• Depreciation: For certain capital assets, although the method for claiming this is through capital allowances rather than direct expenses.

Important Considerations

• Mixed-Use Expenses: If an expense is both for business and personal use (e.g. a mobile phone), you can only claim the business proportion.
• Receipts and Records: Keep detailed records and receipts for all claimed expenses. HMRC may require these for verification.

By understanding and claiming the allowable business expenses, UK businesses can effectively manage their finances and reduce their tax liability. Always ensure that these expenses are justifiable and accurately recorded to comply with HMRC regulations. For complex situations or large businesses, consulting with a tax professional or accountant is advisable to maximise your tax efficiency and stay compliant.

If you’d like to arrange a chat with our team about what expenses you can claim for and save your business money, you can call us directly at 01775 29345 or drop us a line at office@cbsltg.org – we’d love to hear from you.