Finance
What expenses can I claim through my business?

Starting a new business or running one comes with its fair share of expenses. However, the good news is that you can claim some of these costs as business expenses, helping you save money and improve your chances of success. By deducting these expenses from your profits, you ultimately pay tax on a lower amount, resulting in significant savings.
### Business Travel Mileage
One common business expense is mileage allowance payments (MAPs) for employee journeys made for business purposes. You can provide employees with a certain amount of MAPs each year before reporting it to HMRC. The approved amount is calculated by multiplying the employee’s business travel for the year by the rate per mile for their vehicle. Different rates apply based on the type of vehicle and mileage.
### Home Office Equipment
Claiming expenses for essential office equipment and consumables like printer ink is another option for businesses. Ensure that these expense claims are not for individuals working from home. You can claim items used for two years or less, including phones, internet bills, stationery, and computer software.
### Clothing and Entertainment
Employees can also claim for clothing (e.g., hiring a suit for an event) and annual staff parties within a specified cost limit per head.
### Rent and Bills
If you operate your business from home, you can claim expenses for rent, mortgage, and bills by charging some costs through your company. The amount you can claim depends on the space dedicated to business activities.
### Training Courses
Claim allowable business expenses for training that enhances your skills and knowledge to run your business effectively. However, you cannot claim for courses related to starting a business or expanding into new areas.
### Marketing and Subscriptions
You can claim expenses for advertising, website costs, trade journals, and professional organization memberships. However, expenses related to entertainment and donations are not eligible.
### Capital Allowances
Capital allowances cover plants and machinery expenses such as machinery and fixtures. You can deduct the full cost of these items from your profits before tax using the annual investment allowance.
By keeping track of your business expenses and maintaining proper documentation, you can simplify the process and ensure compliance with HMRC regulations. Remember to store all invoices, receipts, and papers securely for up to six years, as HMRC may request proof of expenses even after they have been claimed.
For more information on business expenses and how to navigate the complexities, consult HMRC’s full list of allowable expenses. Properly managing your expenses is crucial for maintaining financial health and maximizing your business’s potential.
-
Professional Development2 months ago
Drawing up your strategy
-
Personal Growth2 months ago
Succeeding as a ‘parentpreneur’: Top tips
-
Videos2 months ago
Great Leaders INSPIRE Others To Do Great Things
-
Productivity2 months ago
How to Increase Remote Work Productivity
-
Productivity2 months ago
Tips for Boosting Work Productivity
-
Productivity2 months ago
5 Ways to Increase Your Personal Assistant’s Productivity
-
Leadership2 months ago
How to Tackle Big Challenges
-
Leadership3 weeks ago
How to Deliver Negative Feedback