Tuesday, May 3, 2016
Understanding exactly what you can and can’t claim for can be a tricky business. Our useful guide aims to shed some light on allowable business expenses. For instance, if you’re buying a new laptop, can you claim for that?
There are some general rules that you’ll need to abide by when claiming business expenses.
With those guidelines out of the way, here’s our rundown of the expenses you can claim in the course of running your business.
There are several categories for submitting accommodation costs;
If your assignment is outside of IR35 you can claim 45p per mile for the first 10,000 business miles you drive in your car each year and then 25p per mile after that.
Allowable business mileage includes travelling between sites and to and from temporary locations. You’ll need to retain your fuel receipts.
You can claim up to £55 per week, per employee, for fees paid to a registered childminder. This should be paid from your company’s bank account.
Special clothing and protective equipment (PPE) can be claimed as a business expense.
The costs of hardware, software and other office equipment essential to
You may claim for donations made to a registered, HMRC-approved, charity.
You can claim for the cost of an eye test, with a valid receipt. You can also claim for glasses but only if they are prescribed for VDU use only. This should be stated on the optician’s receipt.
You can claim a fixed rate of £4 per week for costs associated with using your home as an office, without the need for a receipt. Claims above this amount are possible but require receipts.
It is possible to claim back the cost of some life insurance policies through your company. Our advisors would be happy to provide you with guidance on how to set this up.
You can claim expenses relating to the promotion of your business, e.g advertising costs.
Sundry travel expenses such as toll fees and congestion charges incurred as part of your business activities can be claimed for. Motoring fines cannot be claimed back.
Parking can be claimed for, if it is supported by an original receipt.
If you make pension contributions on behalf of your employees, you can claim this as a business expense.
Any business-related post can be claimed for, as long as original receipts are provided.
You can claim back any costs relating to an annual staff event, as long as you have receipts and the costs do not exceed £150 for each employee.
Office consumables such as paper, pens and stationery are classed as a valid business expense. The costs should be at a reasonable level and you’ll need original receipts.
You can claim reasonable costs for food and drink bought while working at a temporary location, as long as you have valid receipts.
The cost of a home phone and broadband package is an allowable business expense as long as the contract is in your company’s name. You can also claim for business calls made on your landline.
You can claim a reasonable amount for the cost of required business text books and manuals, as long as you keep the receipts.
Training or tuition relating to your current job can be claimed. If the training is not linked to your existing role, it cannot be treated as a valid business expense.
You can claim for business journeys taken by air, rail, bus and taxi. Fare costs to and from your home and temporary place of work can be claimed with a valid receipt. Original tickets and online receipts are acceptable for flights.
Our expert team are on hand to provide guidance on your business claims, and you can use our online portal to keep track of your expenses and receipts.
For further information on allowable business expenses, please get in touch.