Limited company expenses & tax allowances guide

Chris Andreou

April 26, 2021

expenses limited company guide

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Tax

Introduction - Expenses Allowed for Limited Companies

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.

What are allowable business expenses?

Allowable business expenses are essential costs that aren't taxable.

These expenses can be deducted against your income, thereby reducing the amount of tax that you need to pay. For example, if your revenue is £35,000 and your allowable expenses total at £5,000, you'll just be taxed on £30,000.

Limited Company Expenses Guide

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Limited Company Expenses Guide

Employee Expenses Allowances

Limited company employees

Salary

The salary and National Insurance contributions (NIC) you receive as an employee of your company can be claimed as allowable expenses. If your salary goes above the NIC threshold, you're required to pay NICs. 

Staff expenses

1. Annual staff party

You can claim for the costs of hosting an annual 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. 

2. Gifts and trivial benefits

You're not required to pay tax and National Insurance contributions, nor notify HMRC about gifts or benefits for an employee if it meets the following conditions:

  • It cost £50 or less to provide
  • It isn't a cash or cash voucher
  • It's not a reward for their performance
  • It's not included in the terms of their contract

You're required to pay tax on gifts and benefits that don't meet the above conditions. 

3. Healthcare expenses

If you provide private medical insurance for an employee, this is considered a benefit in kind. You're required to pay National Insurance contributions at 13.8% (2020/21 tax year), and your employee will pay personal tax. 

The following health benefits are exempt, so you're not required to report to HMRC, or pay tax and National Insurance on the following: 

  • Medical check-up or health screening (one check-up per year is exempt)
  • Medical insurance or treatment for an employee working overseas

4. Childcare costs

As of 4th October 2018, the Childcare Voucher scheme has been phased out by the government, so new applicants are no longer accepted. If you've set up for this scheme, you can go on receiving and using the vouchers as long as the scheme continues to run. 

Parents can now apply to the Tax-Free Childcare scheme. This initiative was rolled out in 2017, and was designed to replace employer-supported childcare gradually.

Under the scheme, the government will contribute 20p for every 80p you pay, up to a threshold of £2000. The means that you'll receive £2000 per year for each child, for childcare costs of up to £10,000. Further information is available on the Gov.uk website

Pension contributions

After you've set up an agreement with a pension provider, you can make contributions into your own pension and get 100% tax relief as an allowable expense.

Your contributions are tax-free as long as the amount falls under the annual allowance of £40,000 (2020/21 tax year). 

Bear in mind that pension decisions are often complicated, and require careful consideration. We recommend speaking with a financial advisor for personalised advice before you make any contributions. 

Business entertainment

You can't claim for the costs of entertaining clients or potential clients, as these aren't allowable deductions for Corporation Tax purposes.  

Business Travel Expenses Allowed

Limited company director travelling in car

Business mileage

As a limited company director, you can claim back mileage from HMRC if you use your personal vehicle for business trips, and you've paid for the costs of fuel.

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

You can claim the following rates:

Limited company mileage allowance table

Note: You can only claim the cost of fuel if your company owns the car. 

Business travel expenses

In general, you can claim for travel-related expenses as long as the trip is made wholly and exclusively for business purposes, and isn't considered 'ordinary commuting'.

According to HMRC, a commute is defined as a trip that you make between your home and a permanent workplace. 

You can claim for the following:

  • Costs associated with running a car or vehicle, such as fuel expenses, parking fees, tolls, vehicle insurance and vehicle repairs and servicing 
  • Transport fares for flights, as well as rides taken via train, bus, taxi and ferries
  • Meals and accommodation for overnight business trips

Office & Equipment Expenses Allowed

Limited company office expenses

Use of home as office

1. Claiming a flat rate

If you use your home as an office, you can claim a rate of £4 per week as allowable business expenses.

HMRC doesn't require you to keep receipt for this. Additionally, this isn't considered a benefit in kind, so you don't have to pay tax on the amount. 

2. Apportionment of home bills

Alternatively, can claim a proportion of household costs used by the business. The allowable expenses you can claim for will vary depending on the situation, but you can typically claim for utilities and other household expenses (but only for mortgage and council tax if you are self-employed).

This method requires that you work out the rooms that you use for your business, the amount of time you use these rooms for business activities and the proportion of your utilities that you can allocate to business use.

For example, you may dedicate your study room for business purposes for half a day during the weekdays, and you'll require lighting and heating for all of your hours spent on business activities. 

In order to claim proportional costs, a rental agreement must be established between you (the homeowner) and your limited company. The rules surrounding this can be complicated, so we recommend consulting an accountant before you set up a rental agreement.

General office expenses

You can claim for basic office expenses, such as postage, stationery, printing costs and other consumable office supplies.

Equipment

Computers, printers and software are examples of equipment you can claim as business expenses.

You can also claim for office furnishings like tables and chairs, as long as it is largely used for business purposes.

Plant and machinery

Starting 1 April 2021 until 31 March 2023, a 130 per cent super-deduction will apply. Companies purchasing qualifying plant and machinery assets will be able to claim a 130% super-deduction capital allowance, and a 50% first-year allowance for qualifying special rate assets.

These reliefs are only applicable to businesses subject to corporation tax (so it isn't available for sole traders, partnerships or limited liability partnerships. It also only applies to the purchase of new plant and machinery, and not second-hand assets.

Under the Annual Investment Allowance (AIA), you can claim tax relief on 100 percent relief of plant and machinery investments up to the threshold (currently £1 million, until 31 December 2021).

Further information is available on HMRC's factsheet.

Communications: Mobile phone, landline and broadband expenses

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. 

Further information is available on our guide to claiming mobile phone expenses when self-employed.

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. 

3. Broadband

If your residential broadband contract is in your company's name, you can claim a full deduction for the expense provided that personal use of the broadband connection is 'insignificant'.  

If the connection is used for both business and personal purposes, you'll need to pay a benefit in kind charge on the amount paid for by the company. 

If you have a personal broadband plan, you can claim for the costs of using the broadband connection for business activities. You'll need to show your business and personal usage separately, such as providing a copy of an itemised bill.

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

Professional Service Fee Expenses Allowed

Limited company professional services advisor

Business insurance 

You can claim insurance policy costs, as long as you can prove that the policy is taken up strictly for business purposes.

Common types of business insurance include professional indemnity insurance, public liability insurance, employer's liability insurance and business contents insurance. 

Costs of forming your company

The costs that you incur for setting up your company can be claimed as allowable expenses. These costs can range from fees for professional services, to printing costs, equipment purchases and software expenses.

Financial and legal expenses

1. 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.

2. Bank, credit card and other financial costs

Bank charges, including credit card fees and interest on loans can be claimed as business expenses. 

3. Bad debts

To claim bad debts as a business expense, the value of the transaction needs to be included in your company's turnover, and you must be sure that the debts will not be recovered from your customer.

Marketing, advertising and PR costs 

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

Here are a few examples of common marketing and advertising expenses you may incur:

  • Creating a website
  • Costs of web hosting
  • Purchase of domain names
  • Online and print ads

Professional development expenses

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.  

Professional subscriptions 

Subscriptions can be claimed as an allowable expense, as long as these subscriptions are directly relevant to your business and are included in the HMRC list of approved professional bodies

General Expenses Allowed

Limited company expenses allowed

Eye test expenses and glasses

You can claim for vision tests, only if you're required to use visual display equipment as part of your day-today work.

The costs of glasses or contact lenses can be claimed only if these are prescribed for screen-based work, and aren't a general prescription.

Donations

While donations aren't considered allowable business expenses, they are deductible against your Corporation Tax bill.

This applies when you gift the following to a charity:

  • money
  • equipment or trading stock (items that your business makes or sells)
  • land, property or shares in another company (shares in your own company don't qualify)
  • employees (on secondment)
  • sponsorship payments

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Can I expense Travel & subsistence?

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How do I register my business? Guide

How do I register my business?

To register a business as a sole trader, you need to:

Once you've registered, you need to fulfil your responsibilities as a sole trader. These include:

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To set up a limited company, you need to:

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Can I expense general travel expenses?

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Can I expense Eye Tests/ Glasses?

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What are Personal service companies?

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How long do I need to keep accounting records for?

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What are the disadvantages of a Limited Company?

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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.

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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 Airfares (plane tickets) and air travel?

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Can I expense Food & drink?

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

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Can I expense Legal costs?

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Can I expense Foreign exchange costs?

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Can I expense agency fees?

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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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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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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.

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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 Late tax payment penalties?

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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 Computer purchases?

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Can I expense Home Rental?

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Can I expense Domain Names?

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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 expense Business gifts? Guide

Can I expense Business gifts?

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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 Rental equipment/ leased equipment? Guide

Can I expense Rental equipment/ leased equipment?

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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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When do I need a Limited Company? Guide

When do I need a Limited Company?

There is no clear cut time as to when you should start working through your own limited company. With other routes available-such as operating as a sole trader, or working through an umbrella company-it is always worth weighing up what is best for you and your circumstances.

With that being said, if you plan to work as an independent contractor for the foreseeable future, opening your own limited company at the early stages can maximise your opportunities for reaping the benefits of having your own company straight away.

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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 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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Sole Trader vs Limited Company Guide

Sole Trader vs Limited Company

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Registering a Limited Company Guide Guide

Registering a Limited Company Guide

  • What is a Limited Company
  • 10 step process for setting up a Limited Company
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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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How do I set up a Limited Company? Guide

How do I set up a Limited Company?

To set up a limited company, you need to take the following steps:

  • Decide what kind of limited company you need
  • Choose a business name
  • Choose how to set up your limited company
  • Complete the company formation process
  • Open a business bank account
  • Inform your stakeholders
  • Get your VAT registration or transfer sorted out
  • Set up your payroll
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3 Ways to Register Your Company for Free Guide

3 Ways to Register Your Company for Free

Registering a company is a one off cost of £12 and done through Companies House. However, there are a few different ways that you can get this fee waved with other business services that you need.

We'll walk you through how to register your company for free and the perks that you'll get with each.

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Can I expense Software? Guide

Can I expense Software?

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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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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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 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 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 a Van? Guide

Can I expense a Van?

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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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Can I expense Subcontractor costs? Guide

Can I expense Subcontractor costs?

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Can I expense Computer consumables? Guide

Can I expense Computer consumables?

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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 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 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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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 Clothing? Guide

Can I expense Clothing?

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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 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 Advertising fees? Guide

Can I expense Advertising fees?

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Key considerations when you register a Limited Company Guide

Key considerations when you register a Limited Company

As a freelancer, contractor, or small business, it is typical to start with the simple structure of operating as a Sole Trader.

While taxes and other administrative work may be relatively easy when you are a Sole Trader, as your volume of business goes up, there are more and more reasons to take on the task of becoming a Limited Company.

For instance:

  • A Limited Company protects your personal assets. If you are found liable in a lawsuit, only your business assets are at risk.
  • A Limited Company is usually more tax efficient than being a Sole Trader.
  • Once you have your name chosen as a Limited Company registered through Companies House, no one else can take your company name.

Luckily, running a Limited Company doesn't have to be exceedingly complex, though following a set plan will help to keep the complexity to a minimum.

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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 expense Hire and rental charges? Guide

Can I expense Hire and rental charges?

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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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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 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 Health insurance? Guide

Can I expense Health insurance?

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Can I expense Business Rates? Guide

Can I expense Business Rates?

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Can I expense Bank charges? Guide

Can I expense Bank charges?

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How do I register a limited company? Guide

How do I register a limited company?

There are a couple of ways to go about registering a limited company:

  • Register directly through Companies House
  • Go through a third party: An accountant or company formation service can help you process your application, significantly lessening your admin burden. Beyond the application, a good third-party service can also provide accounting advice, help you fulfil your filing obligations and assist with other admin tasks.

We've included further details in our guide on setting up a limited company.

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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 Car hire? Guide

Can I expense Car hire?

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Can I expense my Self Assessment fees? Guide

Can I expense my Self Assessment fees?

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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 Childcare vouchers? Guide

Can I expense Childcare vouchers?

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Can I expense Cleaning? Guide

Can I expense Cleaning?

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What type of business structure is best for you? Guide

What type of business structure is best for you?

If you're looking to the future with the hopes of beginning a journey running your own startup, chances are you're feeling some mixture of excitement, trepidation, and uncertainty when it comes to the finer details of your plan.

Starting your own business is an immensely fulfilling process and an excellent means to flex your creative muscles, but there's a lot of humdrum of business behind the process of turning a vision into a dream.

One of the most important (and one of the earliest) decisions in this process will centre around your business's formation. You'll have to select which type of business structure best suits your goals for the future.

While the choice may sound easy, you'll be well-served by giving the decision ample consideration. The business structure you select will have measurable implications on the way you make money and do business. It'll impact:

  • How much tax you pay
  • Your degree of personal liability should the business fail
  • How much administrative work is involved in the business (both before it comes to fruition and over the course of its life)
  • Your ability to finance and fund your efforts

If you make the wrong selection when it comes time to choose a business structure, you could be faced with a myriad of complications in the future.

Paying professionals for guidance and advice once things go wrong is costly and, for many, an embarrassing affair-performing research well in advance will ensure you're making the best choice for your company and that you can avoid losing out on money or pride later on.

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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 car? Guide

Can I expense car?

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Can I expense Trivial benefits? Guide

Can I expense Trivial benefits?

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Can I expense Christmas gifts for staff? Guide

Can I expense Christmas gifts for staff?

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How to set up a Limited Company Guide

How to set up a Limited Company

When you set up a limited company, you'll enjoy many advantages you don't get as a sole trader. Not only is it a tax-efficient way to run your business, it's also a great way to limit your personal liability and increase your credibility with customers. Additionally, it could open new avenues of work that wouldn't be open to you if you were operating as a sole trader, especially some contractor roles.

One of the disadvantages of running a limited company is that it involves a lot of paperwork, but with the help of this guide, we'll clear away the jargon and tell you exactly what you need.

If you're unsure about whether a limited company is right for you, check out our handy article comparing the differences between Limited companies and Sole Traders to see which business entity is right for you.

If you've got more important things to do than dealing with extra admin, you can always take advantage of one of our accountancy packages and we'll do all the forms and applications for you.

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Can I expense Fuel / petrol? Guide

Can I expense Fuel / petrol?

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Can I expense Alternative finance payments? Guide

Can I expense Alternative finance payments?

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Can I expense Insurance? Guide

Can I expense Insurance?

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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 Motor vehicle expenses? Guide

Can I expense Motor vehicle expenses?

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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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Limited Company Expenses Guide