Limited company what expenses can i claim

We've got an article explaining everything you need to know about business mileage. It is, however, important to keep the receipts for every separate purchase. Receipts must be kept for six years after you have filed your returns, as HMRC could decide to investigate at any point within this time. As always, ensure that you keep receipts for everything. Also be aware that HMRC take a dim view of excessive use of taxis, particularly if they appear unnecessary — i. You can manually scan them or use a mobile app like our Snap app to record the details.

In addition, your company will pay National Insurance Contributions at You can claim expenses for accommodation costs when you travel to a temporary workspace or location for business-related purposes, providing the expense is reasonable and not excessive. HMRC will likely question any excessive claims for expensive hotels or apartments with more than one bedroom.

So, sorry, but staying at the Ritz is probably not going to be acceptable! Generating leads and advertising is an important part of running a successful business. You need to make sure that your potential customers know about your products or services, which is where advertising, marketing, and PR comes in. This may be a one-off cost or an ongoing charge and as long as the service is exclusively for your business then the cost could be classed as an expense.

Many types of bank charges can be claimed as an allowable business expense, though they must be for accounts or cards in the name of the business. You can claim business costs for:. You can claim for any insurance policy for your business, for example, professional indemnity insurance or public liability insurance. Find out more about Small Business Insurance and you can even get a discounted quote as a Crunch client or Crunch Chorus member from within your Crunch software.

You can even claim mileage expenses if you ride a bike. But no matter how you travel you cannot claim for miles commuting to your regular workplace. If you use your personal vehicle for business travel to a temporary workplace or location you can claim the following rates:. The great thing about this is that not only does the business expense reduce your overall Corporation Tax bill, it also means you can reimburse yourself the amount claimed. For more information on company cars check out our article on the Taxation of Company Cars.

We also provide a mobile app for Crunch Pro and Premium clients to simplify recording your mileage. Don't forget to check out our handy business mileage article for more information, as well as our simple spreadsheet to help you get your organised quickly. You can claim allowable business expenses for:. You can claim tax relief by deducting the value of your donations from your total business profits before you pay tax.

We explain things in more detail in our Knowledge article on donating to charity. HMRC does not allow childcare as a legitimate business expense, however, employees themselves including limited company directors can claim tax relief through their salary payments up to a certain amount each month with one of two approved schemes - see below.

The Childcare Voucher scheme was withdrawn by the government on 4th October and is closed to new entrants. If you were set up on the Childcare Voucher Scheme before this date you may continue to use the scheme. In , the government started to roll out a new Tax-Free Childcare scheme for parents and carers.

Read our Tax-Free Childcare article for the full details. Your company can host an annual event - most commonly a Christmas party - as a tax-free benefit, providing you meet certain conditions. The event must cater mostly for staff. As a limited company owner, you may incur a variety of business expenses whilst undertaking your contract duties. Always keep all receipts and expense-related paperwork in a safe place, as you may need to prove claims if challenged in the future.

However, if your contract is caught by IR35 and you are working for a public sector organisation, this allowance can no longer be claimed. You should be able to reclaim any expenses you paid for personally before your company was incorporated, as long as certain conditions are met. You can include items such as mortgage payments, utilities and council tax based on the proportion of the property used for business purpose. However, if you decide to sell your property you may need to pay capital gains tax on the disposal.

The part of the home used for business would not qualify for private residence tax relief. This means that you need to think very carefully about whether a rental agreement is the right decision for you. If you decide to sell your house, you could face a Capital Gains Tax bill on the office part as this will not be covered by the Private Residence Relief.

You should note that very different home office expenses rules apply for sole traders and directors employees. Be careful when googling as this distinction can become blurred.

What home office expenses can I claim as a limited company director?