Every pound of legitimate business expense you claim reduces your taxable profit — and your tax bill. Yet many business owners miss claims simply because they don't know what's allowable. Here's a plain-English guide.
The golden rule
To be allowable, an expense generally has to be wholly and exclusively for business purposes. If something is part-personal (like a phone used for both), you can usually claim the business proportion.
Common expenses you can claim
- Office costs — stationery, software, phone and internet.
- Travel — mileage, train fares, parking (not your normal commute).
- Working from home — a proportion of household costs, or HMRC's flat rate.
- Stock and materials you buy to sell.
- Staff costs — wages, subcontractors, pensions.
- Professional fees — accountancy, legal, insurance.
- Marketing — website, advertising, branding.
What you usually can't claim
- Personal spending or clothing (unless it's genuine protective wear or a uniform).
- Entertaining clients.
- Fines and penalties.
- Your normal commute to a regular workplace.
Limited companies have extra options
If you run a limited company, there are additional tax-efficient options — like pension contributions, a director's salary and dividend mix, and certain benefits. This is where proactive advice really pays off.
The safest way to make sure you're claiming everything you're entitled to (and nothing you're not) is to have an accountant review it. Book a free chat and we'll help you stop leaving money on the table.
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