What expenses can I claim through my limited company?

You can claim expenses that are wholly and exclusively for business purposes, including office equipment, business travel, professional fees, marketing costs, and staff costs. All expenses must be necessary for running your business and properly documented with receipts.

Can I claim home office expenses through my limited company?

Yes, you can claim a proportion of home office costs including utilities, council tax, mortgage interest, and repairs. HMRC allows either actual costs based on business use percentage or a simplified flat rate of £4 per week for basic use.

What business travel expenses are allowable?

You can claim mileage at 45p per mile for the first 10,000 business miles and 25p thereafter, plus parking fees, tolls, and public transport costs. Travel between home and your regular workplace is not allowable, but travel to temporary workplaces is.

How long must I keep expense receipts?

You must keep all business expense receipts and records for at least 6 years after the relevant accounting period ends. Digital copies are acceptable, but they must be clear and show all transaction details including date, amount, and supplier.

Can I claim meals and entertainment expenses?

Business meals with clients or suppliers are allowable, but staff entertainment and client entertainment are not tax-deductible (though still allowable expenses). Subsistence during business travel is claimable if you're away from your normal workplace.

What happens if HMRC challenges my expense claims?

HMRC may investigate expense claims during enquiries or inspections. You must provide evidence that expenses were wholly and exclusively for business. Disallowed expenses may result in additional corporation tax, interest, and potentially penalties for careless errors.

How do GoForma's accountants help with expense management?

Our dedicated accountants review your expenses, ensure HMRC compliance, and maximise your allowable deductions. We provide FreeAgent software training, expense categorisation guidance, and proactive advice to optimise your tax position whilst avoiding compliance issues.

Can I get help implementing these expense guidelines?

Yes, book a free consultation with our specialist accountants who can review your specific business expenses, ensure proper categorisation, and set up systems for ongoing compliance. We provide practical guidance tailored to your industry and business model.