Health check and eye test
If your employees use computer screens as a large part of their job, then they can claim eye tests as well as health checks as limited company expenses. The cost of prescription glasses or contact lenses can also be claimed as business expenses but only if they’re used strictly for screen-based work as part of their employment.
Business insurance
You can claim the cost of your business insurance policies as limited company expenses, as long as they’re used strictly for business purposes. Business insurances including public liability insurance, employers liability, professional indemnity insurance and contents insurance are all allowable expenses.
Accommodation
If you’re on a business trip and have to stay overnight away from your home, you can claim the accommodation costs as an expense. You can also claim the costs incurred by food and drink (but not alcohol) as travel and subsistence costs.
Use of home as office
If your home is the heart of your business, you’re able to claim a percentage of your household cost and utility bills as business expenses. This cost could be claimed as a rate of £6 per week or by working out what rooms you use for your business needs and the amount of time they’re used for work purposes. You’re also able to claim the costs of lighting, heating, postage, printing, accountancy and legal services as limited company expenses too – as long as they’re used solely for business purposes. If you offer employees gifts or benefits that don’t match all of the criteria above, then you’ll need to pay tax on them.
Professional subscriptions
Occupation-specific magazine subscriptions, journals and books can be claimed as a limited company expense.
Phone bills
Work phone contracts and broadband payments can be claimed as a limited company expense. If your mobile phone contract is in your company’s name and used solely for business purposes, you can claim the entire bill as a business expense. If it’s a personal contract, you’ll need to separate the business-related expenses only. You can also claim limited company expenses for the business calls you’ve made from your home phone line.
Annual staff party
Whether it’s a Christmas shindig or a staff summer party, the costs of entertaining your employees can be claimed as a business expense as long as it’s an annual event open to all staff members and costs less than £150 per person.
Equipment
From computers and software to scanners and printers, the equipment that’s necessary to help you carry out your role as a limited company director can be claimed as company expenses. Office furniture, such as chairs and desks, can also be claimed for as long as it’s used mainly for business purposes.
Professional development
Personal development and training courses can be claimed as limited company expenses, just make sure your check it’s eligible before hitting the books. For example, if you’re an accountant, any training you undergo to become a chartered accountant is an allowable expense.
Travel
Travel expenses can be claim as limited company expenses if:
- You’re responsible for paying the travel costs.
- The travel is necessary for work purposes and you need to be present at the destination in question for business purposes (This doesn’t include the everyday commute between your home and permanent workplace.)
If you use your personal car or van to travel to a temporary place of work and you’ve paid for the fuel out of your own pocket, you can claim the following rates as limited company expenses:
- Car and vans – 45p per mile for the first 10,000 miles and then 25p for every mile thereafter.
- Motorcyclists – 24p per mile
- Bicycle – 20p per mile
Claiming the above rates doesn’t just lower your total Corporation Tax Bill, it also means you can reimburse yourself for the amount claimed. As well as the mileage rates listed above you can also claim the following as business expenses:
- Parking costs
- Road toll fees
- Congestion charges
- Hotel rooms (within reason)
- Food and drink on overnight trips
- Public transport, including train, bus, air, and taxi fares
- Vehicle insurance
- Vehicle repairs and servicing
Entertainment
Generally speaking, spending money on business entertainment isn’t an allowable expense against profits. However, if you have to spend your own money on business entertainment as part of your duties as a limited company director, you may be able to claim it as a business expense. However, these business entertainment costs would be disallowed in the company profits, giving you the same result as not claiming in the first place.
Disclaimer – This is not an exhaustive list and information needs to be double checked by the user before using this document as a source.
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