What Expenses Can You Claim as a Self Employed or Limited Company
List of Possible Allowable Expenses
All expenses which you incur wholly and exclusively for business purposes are allowable for tax purposes. We have produced the list of allowable expenses that you wish to claim as a contractor.
All the salaries paid to directors, or any other employee of the company will be considered as an allowable expense along with the National insurance contribution and employee taxes if any.
Being a UK resident you get tax free personal allowances of £7,475(2011/12), £8,105 for 2012/13 or £9,205. Your salary will not attract any national insurance contribution or tax, if you take £7,068 for 2011/12 and £7,592 for 2012/13 in terms of the salary from the company.
Use of Home:
If you are using your home for business purposes, there is possibility that you can claim a portion (your rent, rates, and bills) as an allowable expense. As per HM revenue & customs guidance you can claim a flat rate deduction of £3.00 per week for each week that you’ve got to work at home. This doesn’t include the cost of business telephone calls.
If you are doing a work related course to enhance the ability and skills, the cost can be paid by the company and can be claimed as expenses. You will also be able to claim associated cost of training such as traveling and hotel accommodation.
All the subscription can be paid from your company if they are related to your field and business, such as subscriptions to governing authorities for license or any membership fee.
Travelling, Subsistence and Accommodation:
You can get tax relief on the cost of business journeys. This includes
– Travelling from one place to another
– Travelling from permanent work place to temporary workplace
You cannot claim travelling as an expense for private trips. If you are using your own car for business purposes you can claim 45p a miles for first 10,000 miles and 25p thereafter. A tax relief can also be claim for, Public transport fares, Hotel accommodation for business purposes, Meals, Tools, Congestion charge, parking fee etc. However, please ensure that you keep all your receipts with you.
Where you as an employee stay in hotel or guest house, tax relief can be claimed as long as it was for business purpose. If you are staying away for your work, you may also claim for provision of breakfast and evening meals.
- Accountancy Fee
- Agents Fees
- Bad Debts
- Bank Charges and Interest
- Christmas Party – Staff only
- Cleaning charges
- Commissions Paid
- Computer consumables and software
- Courses specifically required for earning the income
- Employer NI & Tax
- Hire of Equipment
- Legal Fees
- Light & Heat
- Loose Tools
- Maintenance of office machines
- Mobile Phone in Business Name
- MOT – Car Insurance – Road Tax
- Motor Expenses – Repairs & Maintenance
- Protective clothing (Boots, Overalls, Hard Hats etc.)
- Purchases for Resale
- Petty Cash
- Salaries & Wages & Staff Bonus
- Security Costs
- Service and Repair
- Staff Benefits (Medical, Permanent Health, Pensions etc.)
- Staff Training & Welfare
- Sundry Expenses
- Telephone – Mobile
- Trade journals
- Trade Subscriptions
- Travel (Air, Rail, Taxis*, Underground, Bus)
- Use of Home – (Ask us for Use of Home Sheet if not Provided)
- Web Development Cost
- Sub Contractor Cost
*Please seek Professional advice before claiming any of the expenses mentioned above.