How to claim for business mileage

Chris Andreou

April 21, 2021

claim for business mileage guide

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Who can claim business mileage?

Being self-employed often means having to juggle multiple roles and tasks.

Amidst all your different responsibilities, keeping track of your business mileage can appear tedious—and it can easily become a task that you postpone time and time again. Yet, these little trips can add up, and as a small business owner, it's important that you make the most of what you can claim. 

If you're newly self-employed, or just want to get a grasp on the basics of claiming your business mileage, this article is for you.

It explains the essentials, including how you can calculate your costs, the records you need to keep, and other important information that you need to be aware of.

Both business owners and employees can claim business mileage.

Claiming Business Mileage - Employees

As an employer, your employees can claim business mileage from you.

If you don't reimburse their expenses or pay them less than the HMRC rates, they can claim mileage allowance relief from HMRC.

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Claiming Business Mileage - Self Employed

As a self-employed person, you can claim back mileage from HMRC if you use your personal vehicle for business trips. According to HMRC, these trips are defined as journeys you make 'wholly and exclusively' for business purposes.

These include:

  • Trips taken to complete work (i.e deliveries)
  • Trips between two workplaces for the same job
  • Going from an employee's home to a client
  • Going to a temporary workplace

Here are some examples of journeys that don't count as business trips:

  • Driving to a location situated near your workplace (i.e. driving to client's office located just next to your home)
  • Trips in which your main purpose isn't business-related (i.e. running a business-related errand during a personal trip)

If you're unsure about what you can claim, it's best to clarify this with our accountants at Forma.

Receipts from business mileage claims

Business mileage calculation

There are two approaches you can take:

1. Add up all your motor expenses for the year. Calculate the number of business miles as a percentage of your total miles. This percentage can be used to work out the business percentage of your costs. 

2. Claim a fixed rate mileage allowance. The costs of purchase and upkeep are included in the rate. 

For small businesses, the second approach is a simpler option—there are fewer calculations involved, and you don't need to work out your total motor expenses across the year.

However, there are a few points you need to take note of:

  • Once you have decided on a method, you need to stick with it until the vehicle is replaced
  • If your business' annual turnover exceeds the VAT threshold (set at £85,000 for a 12-month period ending in 2020/21), you need to use the first method
  • You can't use the second method if you bought your vehicle with a capital allowance

Calculating Mileage Rates Costs [Example]

Calculating costs using HMRC mileage rates

If you're going by the second approach, you'll need to refer to the table below for the rates (per business mile) set by HMRC.

Note: Currently, there isn't mileage claim for bicycling for sole traders.

HMRC car mileage rates per mile

Here's an example:

John is a freelancer. Over the year, he has driven 15,000 business miles using his car. 

HMRC car mileage rates - example

Limited Company Expenses Guide

What's Inside:

  • Allowable business expenses
  • Employee expenses
  • Travel expenses
  • Office & equipment expenses
  • Professional services expenses
  • General expenses
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Limited Company Expenses Guide

What's Inside:

  • Allowable business expenses
  • Employee expenses
  • Travel expenses
  • Office & equipment expenses
  • Professional services expenses
  • General expenses

24 Month Rule for Business Mileage

HMRC has several rules in place to ensure that businesses claim mileage correctly, and the 24 month rule is one of these.

The rule applies to employees and contractors working in multiple locations. It states that you're entitled to claim travel expenses as long as your workplace is considered temporary. 

There are a couple of important points related to the rule:

  • Temporary workplace: A workplace is considered temporary if you've worked there for less than 24 months. After this period, you're considered a permanent employee-and therefore aren't entitled to claim travel expenses
  • 40% rule: If you spend more than 40% of your working time at a workplace, it is considered a permanent location. As such, you won't be able to claim travel expenses.

Record keeping requirements for business mileage

It's essential that you keep accurate records to back up your mileage claim.

You'll need to keep a detailed mileage log that records the date and location of each business trip, as well as the total number of business miles driven. 

Bear in mind that keeping track of the details doesn't have to be a tedious process, as long as you're using the right tools. Apps such as MileIQ and Autotrip can facilitate the process, making it easier to log your miles consistently.

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Can I expense Parties (or staff entertainment)? Guide

Can I expense Parties (or staff entertainment)?

As a limited company director, you can can claim for the costs of hosting a staff party, as long as the following conditions apply:

  • Your cost per pax shouldn't exceed £150 (including VAT). Your employees may invite a partner, and if they do, your total budget for an employee and an additional guest will be £300.
  • The main purpose of the event is to entertain your staff members. As such, most of the event attendees should be your employees.

Do note that the per pax budget of £150 applies across the year, so you can claim for several staff events as long as the costs fall within the budget. You can claim this expense even if you're the sole employee in your business.

As a sole trader, you're not considered an employee. As such, you can't claim the costs unless you have employees.

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 claim expenses before my company was formed? Guide

Can I claim expenses before my company was formed?

Yes. You can claim pre-trading expenses of up to seven years before the incorporation date of your limited company, as long as these expenses have been paid for with your own money and were incurred ‘wholly, exclusively and necessarily' for setting up your business.

Examples of pre-trading expenses you can claim for include:

  • Internet and domain name fees
  • Purchase of computer equipment and software
  • Accountancy and other professional fees
  • Travel costs
  • Insurance
  • Stationery

To learn more about allowable business expenses, read our expenses and tax allowances guide for limited company directors.

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Can I expense Clothing? Guide

Can I expense Clothing?

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Can I expense Accountancy fees? Guide

Can I expense Accountancy fees?

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Can I expense Magazines, books & journals? Guide

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 claim personally paid expenses? Guide

Can I claim personally paid expenses?

There may be times when you have no option but to use your personal funds to cover company costs such as paying by cash or if you forget to bring your company card. It's important to keep a copy of the receipt of all expenses but this is especially important when paying for costs and expenses personally. This way, a record of the cost can be kept, logged in your company accounts and then your company can reimburse you for this.

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Can I expense Ebay charges? Guide

Can I expense Ebay charges?

Yes, you can claim eBay fees, such as the insertion fee and final value fee as deductible expenses.

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 Travel & subsistence? Guide

Can I expense Travel & subsistence?

You can claim travel-related expenses, as long as the travel is wholly and exclusively for business purposes and isn't considered 'ordinary commuting'. HMRC defines a commute as a trip that you make between your home and a permanent workplace.

You can claim for:

  • costs associated with running a car or vehicle, such as fuel expenses, parking fees and tolls.
  • transport fares for flights, as well as rides taken via train, bus, taxi and ferries
  • meals and accommodation for overnight business trips

You can claim "reasonable" food and drink expenses if:

  • You're making an occasional business trip outside of your normal pattern of travel
  • You're staying overnight, and are also claiming accommodation costs
  • Your trade is, by nature itinerant

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? Guide

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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How to claim for business mileage Guide

How to claim for business mileage

Being self-employed often means having to juggle multiple roles and tasks.

Amidst all your different responsibilities, keeping track of your business mileage can appear tedious-and it can easily become a task that you postpone time and time again. Yet, these little trips can add up, and as a small business owner, it's important that you make the most of what you can claim.

If you're newly self-employed, or just want to get a grasp on the basics of claiming your business mileage, this article is for you.

It explains the essentials, including how you can calculate your costs, the records you need to keep, and other important information that you need to be aware of.

Both business owners and employees can claim business mileage.

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Can I expense Computer equipment? Guide

Can I expense Computer equipment?

Yes, you can claim the purchase of computers 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 a Laptop? Guide

Can I expense a Laptop?

The portability of a laptop brings in a layer of complexity, as they tend to be purchased for both business and personal use. You can claim it as an expense, but you will need to apportion between business and personal use.

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 is the 24 month / 2 year rule for expenses? Guide

What is the 24 month / 2 year rule for expenses?

The 24-month rule, also referred to as the two-year rule, enables contractors to claim travel expenses from their home to a client's office, as long as it is classed as a "temporary workplace".

The following conditions must apply for a work location to be classed as a "temporary workplace"

  • The period of engagement is less than 24 months
  • The contractor should spend less than 40 percent of their time at the workplace

Essentially, if you work at the client's office for more than 24 months, or spend more than 40 percent of your time at the location, it is considered a permanent workplace-and as such, you won't be able to claim travel or subsistence expenses.

Bear in mind that this is subject to the SDC legislation introduced in April 2016. Further elaboration on SDC can be found in our guide to claiming expenses as an umbrella company contractor.

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Can I expense Postage? Guide

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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How long do I need to keep accounting records for? Guide

How long do I need to keep accounting records for?

You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year.

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Can I expense Christmas gifts for staff? Guide

Can I expense Christmas gifts for staff?

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Can I expense Legal costs? Guide

Can I expense Legal costs?

The costs incurred for engaging professional services-such as hiring a lawyer-can be claimed as an allowable expense, as long as these services are carried out solely for business purposes.

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 Childcare vouchers? Guide

Can I expense Childcare vouchers?

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Can I expense Paypal charges? Guide

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 Pensions? Guide

Can I expense Pensions?

As a sole trader, you can't claim pension contributions as a deductible expense. However, you can get personal tax relief from contributions you make into your pension scheme.

If you're a limited company director, you have the option of making pension contributions through your company. This will reduce your company's profits, and as such reduce the amount of corporation tax your company pays.

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 general travel expenses? Guide

Can I expense general travel expenses?

General travel expenses can't be claimed as a deductible business expense. You can only claim for travel-related expenses as long as the trip is made wholly and exclusively for business purposes, and isn't considered 'ordinary commuting'.

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 Food & drink? Guide

Can I expense Food & drink?

You can claim "reasonable" food and drink expenses when you're travelling for business, if:

  • You're making an occasional business trip outside of your normal pattern of travel
  • You're staying overnight, and are also claiming accommodation costs
  • Your trade is, by nature itinerant

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? Guide

Can I expense car?

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Can I expense Motor vehicle expenses? Guide

Can I expense Motor vehicle expenses?

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Can I expense Bank charges? Guide

Can I expense Bank charges?

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Do I have to pay tax on expenses? Guide

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 Cleaning? Guide

Can I expense Cleaning?

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Can I expense Subcontractor costs? Guide

Can I expense Subcontractor costs?

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Self employed expenses & tax allowances guide Guide

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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Can I expense Charitable Donations? Guide

Can I expense Charitable Donations?

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Can I expense Computer consumables? Guide

Can I expense Computer consumables?

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Can I expense Training costs? Guide

Can I expense Training costs?

Professional development costs can be claimed as an allowable expense, as long as the course content directly relates to your trading activity.

Training courses that you attend to learn a new skill-which you can use to expand into a new industry or offer different services-aren't allowable, unless you can show that these courses are helping you build up on your existing skills or knowledge.

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 Health insurance? Guide

Can I expense Health insurance?

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Can I expense a Van? Guide

Can I expense a Van?

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Can I expense Office rental? Guide

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 Social Media Ads or Marketing Costs? Guide

Can I expense Social Media Ads or Marketing Costs?

Yes, you can claim the costs of social media ads 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 Insurance? Guide

Can I expense Insurance?

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Can I expense my use of home as an office? Guide

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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Can I expense Advertising fees? Guide

Can I expense Advertising fees?

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Why are expenses important? Guide

Why are expenses important?

Expenses are important as you can claim them against your revenue, which helps to reduce the amount of tax 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 Hire and rental charges? Guide

Can I expense Hire and rental charges?

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Self employed advisory fuel rates guide Guide

Self employed advisory fuel rates guide

Advisory fuel rates are recommended repayment amounts a company can use when reclaiming the fuel element on business mileage.

The rates are used to calculate:

  • How much employers should reimburse employees for business travel using the company car
  • How much employees need to repay employers for private travel using the company car
  • The VAT you can claim back on business mileage using your personal vehicle
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Can I expense Taxi fares or an Uber? Guide

Can I expense Taxi fares or an Uber?

Taxi fares are generally deductible, as long as the fares aren't incurred for ordinary commuting. According to HMRC, a commute is a trip you make most days between your home and permanent workplace.

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 Mileage? Guide

Can I expense Mileage?

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Use of Home Allowance Guide

Use of Home Allowance

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Can I expense Repairs to equipment? Guide

Can I expense Repairs to equipment?

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What expenses can I claim as a Limited Company Director? Guide

What expenses can I claim as a Limited Company Director?

As a limited company director, there are various allowable business expenses you can claim for. These include (and aren't limited to):

  • Pension contributions
  • Staff expenses
  • Business mileage
  • Mobile phone, landline and broadband expenses
  • Costs of forming your company

Further information on the types of expenses you can claim for can be found in our limited company expenses and tax allowances guide.

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Can I expense Late tax payment penalties? Guide

Can I expense Late tax payment penalties?

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Can I expense Eye Tests/ Glasses? Guide

Can I expense Eye Tests/ Glasses?

You can claim an eye test as an allowable expense, if it is required for the use of visual display equipment in your work.

In general, you can't claim for glasses or contact lenses unless these items are 'wholly and exclusively used for business purposes', and you're able to prove that you don't use them outside of your working houses. One example would be that you have several pairs of glasses, one of which is used only when you're at work.

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 Professional fees? Guide

Can I expense Professional fees?

The costs incurred for engaging professional services-such as hiring an accountant, lawyer or architect-can be claimed as an allowable expense, as long as these services are carried out solely for business purposes.

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 Optical expenses? Guide

Can I expense Optical expenses?

You can claim an eye test as an allowable expense, if it is required for the use of visual display equipment in your work.

In general, you can't claim for glasses or contact lenses unless these items are 'wholly and exclusively used for business purposes', and you're able to prove that you don't use them outside of your working houses. One example would be that you have several pairs of glasses, one of which is used only when you're at work.

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 are the HMRC approved mileage rates? Guide

What are the HMRC approved mileage rates?

The HMRC approved mileage rates are as follows:

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Can I expense mobile phone? Guide

Can I expense mobile phone?

As a sole trader, you can't claim for the line rental if you're using your mobile phone for business and personal use. You can claim the costs of business calls, if these are indicated on an itemised bill. To claim for the costs, you'll need to set up a mobile contract under your business name, and use it solely for business purposes.

As a limited company director, you'll need to set up a contract between your company and service provider in order to claim the full costs as a deductible business expense. If the contract is made under your personal name, you won't be able to claim the costs as an expense.

Refer to our guide on mobile phone expenses for further information.

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Can I expense Stationery? Guide

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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Limited company expenses & tax allowances guide Guide

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 Parking? Guide

Can I expense Parking?

You can claim parking costs as a deductible expense, as long as it is incurred wholly and exclusively for business purposes. Other allowable business travel expenses include tolls and congestion charges. You can't claim parking fines 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 a Car or Motor vehicle purchase? Guide

Can I expense a Car or Motor vehicle purchase?

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Can I expense Home Rental? Guide

Can I expense Home Rental?

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Can I expense Fuel / petrol? Guide

Can I expense Fuel / petrol?

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Can I expense Business gifts? Guide

Can I expense Business gifts?

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Can I expense Meeting Room Hire? Guide

Can I expense Meeting Room Hire?

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Can I expense Health / medical check? Guide

Can I expense Health / medical check?

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Can I expense Marketing costs? Guide

Can I expense Marketing costs?

You can reclaim marketing expenses as long as these are used solely for business purposes. This applies to both one-off costs and ongoing fees.

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? Guide

Can I expense Employer's liability insurance?

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Can I expense Annual Return/ Confirmation Statement fee? Guide

Can I expense Annual Return/ Confirmation Statement fee?

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Can I expense Alternative finance payments? Guide

Can I expense Alternative finance payments?

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Can I expense Internet and WiFi? Guide

Can I expense Internet and WiFi?

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Can I expense my home office? Guide

Can I expense my home 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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Can I expense Fixtures and fittings cost? Guide

Can I expense Fixtures and fittings cost?

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Can I expense Business Rates? Guide

Can I expense Business Rates?

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Can I expense Domain Names? Guide

Can I expense Domain Names?

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What is the 24 Month Rule for Directors Expenses? Guide

What is the 24 Month Rule for Directors Expenses?

The 24-month rule, also referred to as the two-year rule, enables contractors to claim travel expenses from their home to a client's office, as long as it is classed as a "temporary workplace".

The following conditions must apply for a work location to be classed as a "temporary workplace"

  • The period of engagement is less than 24 months
  • The contractor should spend less than 40 percent of their time at the workplace

Essentially, if you work at the client's office for more than 24 months, or spend more than 40 percent of your time at the location, it is considered a permanent workplace-and as such, you won't be able to claim travel or subsistence expenses.

Bear in mind that this is subject to the SDC legislation introduced in April 2016. Further elaboration on SDC can be found in our guide to claiming expenses as an umbrella company contractor.

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Can I expense Trivial benefits? Guide

Can I expense Trivial benefits?

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Can I expense Hotels and bed & breakfasts? Guide

Can I expense Hotels and bed & breakfasts?

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Can I expense childcare? Guide

Can I expense childcare?

As a sole trader, you can't claim childcare costs as a deductible business expense. However, you can claim tax relief through the tax-free childcare scheme.

As a limited company director, you can't claim childcare costs as a deductible business expense. However, you can claim tax relief through the childcare voucher scheme or tax-free childcare scheme.

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 Conference expenses? Guide

Can I expense Conference expenses?

Yes, you can claim the costs of attending business-related conferences 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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Claiming mobile phone expenses when self employed Guide

Claiming mobile phone expenses when self employed

"Can I claim my smartphone as an expense?" is a simple, but a common question for first-time contractors.

That's because HMRC's expenses rules can be confusing, and while you want to be sure that you're running your business as tax-efficiently as possible, it's just as important to be in the good books of HMRC.

We've put together a short guide so you can get a quick overview of the basics. If there are any areas you're unsure about, you may check in with our accountants at Forma so you can be sure that you're claiming your limited company expenses correctly.

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Can I expense Computer purchases? Guide

Can I expense Computer purchases?

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Why should I claim mileage? Guide

Why should I claim mileage?

As a contractor, freelancer or small business owner, it's important that you make the most of what you can claim-especially as the trips you make can add up over time. Here's an example: if you make a 25-mile round trip twice a week, it adds up to 2,400 miles a year. That's £1,080 that you can as deduction against your business revenue.

To learn more, read our guide on how to claim business mileage.

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Limited Company Expenses Guide Guide

Limited Company Expenses Guide

  • Allowable business expenses
  • Employee expenses
  • Travel expenses
  • Office & equipment expenses
  • Professional services expenses
  • General expenses
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Can I expense Phone calls? Guide

Can I expense Phone calls?

As a sole trader:

If you're using your mobile phone line for both business and personal use, you can't claim for line rental. However, you can claim for call costs for business use if you obtain an itemised bill. If you have a separate mobile phone line for business use, you can claim the costs incurred.

As a limited company director:

1. Mobile phone: If your mobile phone contract is between your company and mobile phone provider, and is used for solely business purposes, you can claim the entire bill as an allowable expense.

If you have a personal contract, you can claim for the costs incurred for business calls. You're also able to reclaim the VAT element of the business calls.

2. Landline: If your landline contract is solely for business use, you can claim the cost as an allowable expense. You can also claim for business calls you've made using your home phone line.

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 my Self Assessment fees? Guide

Can I expense my Self Assessment fees?

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Can I expense Entertainment or Dinners? Guide

Can I expense Entertainment or Dinners?

You can't claim for the costs of entertaining clients, suppliers and customers.

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 Utilities? Guide

Can I expense Utilities?

If you're renting an office, you can claim utilities as a deductible expense.

If you're using your home as an office, you'll need to work out the proportion of your utilities that you can allocate to business use in order to claim these costs 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 claim for fuel as well as mileage? Guide

Can I claim for fuel as well as mileage?

Mileage claims are designed to help cover your fuel costs, as well as the running costs of having a vehicle. As such, you can't make separate claims for individual expenses such as fuel, electricity or vehicle repairs.

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Can I expense gym fees? Guide

Can I expense gym fees?

As a sole trader, you can't claim for gym membership fees.

As a limited company director, you can claim for gym membership via your company. A benefit in kind (BIK) charge will arise against the employee, and the company will need to pay Class 1A NICs on the total cost of the membership.

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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Christmas Company Expenses Guide Guide

Christmas Company Expenses Guide

  • Christmas expenses overview
  • Staff party claims
  • Gift voucher claims
  • Gift claims
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Can I expense Foreign exchange costs? Guide

Can I expense Foreign exchange costs?

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Do I need to retain expense receipts? Guide

Do I need to retain expense receipts?

You need to keep your receipts for expenses for at least five years after the 31 January submission deadline for the relevant tax year.

It helps to minimise paperwork wherever possible, so we recommend taking a picture of your receipts and storing these images away digitally. You can use cloud storage platforms like Dropbox or an expenses app like Expensify.

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What expenses can I claim as a contractor? Guide

What expenses can I claim as a contractor?

As a contractor, there are a vast number of different expenses that can be claimed for when working through a limited company.

These expenses must be deemed wholly, exclusively and necessary for business to carry out it's duties and some examples can include:

  • Travel
  • Food (subsistence)
  • Accommodation
  • Computer & office equipment
  • Postage & Stationery
  • Accountancy & professional fee's
  • Insurance
  • Telephone & internet
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Personally paid expenses vs company paid expenses Guide

Personally paid expenses vs company paid expenses

Where possible, it is advisable to cover any company expenditure directly using company funds such as directly via the company bank account. This ensures that all company transactions are kept in one place and can be easily tracked.

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Can I expense Airfares (plane tickets) and air travel? Guide

Can I expense Airfares (plane tickets) and air travel?

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Can I claim using the cycle to work scheme? Guide

Can I claim using the cycle to work scheme?

Employers who purchase bicycles and safety equipment for loan to employees can benefit from treating the purchase as capital expenditure eligible for corporation tax relief. VAT can also be claimed back on the purchase unless you are registered on the VAT flat rate scheme.

The loan of bicycles and safety equipment under the cycle to work scheme removes any tax charge to the employee that would usually arise on a taxable benefit.

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Can I expense a Bicycle or use the Cycle to Work scheme? Guide

Can I expense a Bicycle or use the Cycle to Work scheme?

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Can I expense Car hire? Guide

Can I expense Car hire?

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Can I expense Rental equipment/ leased equipment? Guide

Can I expense Rental equipment/ leased equipment?

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Can contractors reclaim insurance costs? Guide

Can contractors reclaim insurance costs?

Business insurance costs can be reclaimed through your business and are eligible for Corporation Tax relief.

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Can I expense motorcycle/ moped? Guide

Can I expense motorcycle/ moped?

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What is a use of home allowance? Guide

What is a use of home allowance?

As a self-employed person, there are two ways to calculating the allowance you can claim for working from home. You can claim a fixed rate of £6 per week, or a proportion of household costs used by the business. Further information is available on our resource on the use of home allowance.

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Can I expense agency fees? Guide

Can I expense agency fees?

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Limited Company Expenses Guide