Can I expense Software?

Jordan Macey

April 21, 2021

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Small Business Accounting

You can claim the costs of purchasing computer software that your business uses for less than two years. You can also claim for computer software that you use for more than two years, if your company makes payments regularly to renew the license.

For further information on allowable business expenses, refer to our expenses and allowances guides for limited company directors and the self-employed.

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What banks does FreeAgent integrate with?

Presently, FreeAgent supports over 40 feeds from banks worldwide. You may refer to their resource to see which banks are listed, or search for your bank using the search tool in the Banking area of FreeAgent.

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Can I expense Stationery?

Yes, you can claim office costs (such as the purchase of stationery) as a deductible expense.

For further information on allowable business expenses, refer to our expenses and allowances guides for limited company directors and the self-employed.

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Best contractor accounting software

Software can go a long way in assisting businesses and accountants alike. Often an accountant will have a preferred software that they use which could be something bespoke they have developed themselves or something they love and trust off of the shelves.

Our accountants at Forma have tried and tested many different solutions with FreeAgent being the clear winner in the contractor accounting tool.

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Can I expense Bank charges?

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Can I expense Clothing?

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Can I expense Postage?

You can claim postage costs as a business expense.

For further information on allowable business expenses, refer to our expenses and allowances guides for limited company directors and the self-employed.

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Can I expense Employer's liability insurance?

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Can I expense Insurance?

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Do I have to pay tax on expenses?

You do not need to pay tax on allowable business expenses. These are essential business costs that are incurred "wholly and exclusively" for the purposes of running the business. They can be deducted against your income, thereby reducing the amount of tax that you need to pay.

For further information on the types of expenses you can claim, refer to our guides for sole traders and limited company directors.

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Can I expense Office rental?

Yes, you can claim office rental and the costs of using a coworking space as a deductible business expense.

For further information on allowable business expenses, refer to our expenses and allowances guides for limited company directors and the self-employed.

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Can I expense car?

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Can I expense my use of home as an office?

There are two methods you can use to work out your allowable home expenses: you can claim a flat rate allowance (also known as simplified expenses), or claim a proportion of your bills. For further information on these methods, refer to our expenses and allowances guide for limited company directors and the self-employed.

If you're a sole trader and aren't sure which method is the better option for your business, you can use Gov.uk's simplified expenses checker tool.

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Self employed expenses & tax allowances guide

Allowable business expenses are costs that you can claim as a deduction against your revenue, which reduces the amount of tax you need to pay.

Here's an example: if your revenue is £35,000 and your allowable expenses total at £5,000, you'll just be taxed on £30,000.

The rules surrounding allowable business expenses aren't always straightforward, and this is where our guide comes into play.

In this article we will run through the most common expenses that sole trader businesses claim for, along with tips you can implement to ensure that you are keeping proper records.

Bear in mind that this isn't a definitive guide, so if you need personalised advice, it's best to consult our accountants atForma.

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Limited company expenses & tax allowances guide

As a limited company director, you want to run your business in the most tax efficient way possible.

One way to achieve this is to claim for allowable business expenses correctly, so that you don't wind up having to pay more tax than you are legally obliged to.

It can be tricky figuring out what you can or cannot claim for, and this is where our guide comes into play.

We'll run through the different expenses you can claim for, but bear in mind that this isn't a definitive guide. Do check out our resource hub on limited company tax topics for more information, or consult our specialist accountants at Forma if you need personalised advice.

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Can I expense Magazines, books & journals?

The costs of purchasing magazines, books and journals can be claimed as a deductible expense, as long as these items are required for your business (e.g. trade publications, professional journals, training materials).

For further information on allowable business expenses, refer to our expenses and allowances guides for limited company directors and the self-employed.

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Can I expense Paypal charges?

You can claim PayPal charges as a deductible expense.

For further information on allowable business expenses, refer to our expenses and allowances guides for limited company directors and the self-employed.

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Can I expense Printing?

Printing costs can be claimed as a business expense.

For further information on allowable business expenses, refer to our expenses and allowances guides for limited company directors and the self-employed.

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Can I expense Trivial benefits?

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Can I expense Business Rates?

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Can I expense Health insurance?

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