What Business Expenses Can You Claim?


If you are set up as a sole trader and run your own business, you will be aware that you can claim business expenses on some of your business costs. The following article provides advice on what business expenses you can claim.

Any business will have to pay tax on their profits at around 20%. Business expenses can be removed from the taxable amount which means the tax you pay will be lower. You need to be aware of what expenses you can claim. If you are diligent and smart in the way you claim expenses, you will find that you can save a large sum of money each year. Some business owners tend to use an accountant to help them with their annual tax returns. There are various money saving tips for businesses that can help maximise your annual profits. The following article provides an overview of what expenses you can claim to help reduce your annual tax bill

What Business Expenses Can You Claim

Millage Allowance

If you use a car for transport then you are entitled to claim millage. General rule is that you can claim 45p per mile for the first 10,000 miles and then 25p after that.

Office Equipment

Expenses such as stationary, ink cartridges and office equipment can also be purchased against your tax. If you run a limited company, you purchase equipment as an asset of the company which makes it a claimable expense.

Rent and Bills

If you run your business from home then you can also claim bills such as rent and mortgage payments though only a monthly proportion can be claimed. Generally the amount you can claim will be down to the space used for your business

What Business Expenses Can You Claim

Phone & Internet

Business phone and internet costs for your business can also be claimed though the split between personal and business use needs to clear. Hosting, internet security, website management and other admin expenses can be claimed if they relate to running the business

Client entertaining

Some client entertaining can be claimed if it is a legitimate business expense. For example if you were meeting clients to discuss a business deal, then some client entertaining expenses can be claimed. However this expense should not be abused.

There are other expenses that can be claimed but it is important not to try and pay no tax. The general percentage of tax paid is 20% therefore any necessary business expenses can be claimed to reduce this amount. Some business owners will try and claim every expense in an attempt to pay no tax at all. Unfortunately this will only highlight your business to the tax authorities and a detailed investigation into your accounts will be made.

If you are fair in claiming business expenses then you can save a considerable amount of each year without alerting HMRC.


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