Limited companies can claim tax relief on certain expenses associated with running the business.
These expense claims must be for expenses that are, according to HMRC, “wholly, exclusively and necessarily incurred in the performance of your duties.” That is to say, they must be expenses associated that are solely for your business, not a blend of both personal and business use, for example. Correct bookkeeping and retaining paperwork/invoices/receipts associated with limited company expenses is important to demonstrate that they are legitimate.
There are number of expenses you can claim, including:
In order to justify the expenses claimed in the event they are queried by HMRC, it’s important to retain receipts and proof of purchase in case you are asked to provide these.
If you are unsure about whether or not a cost can be deemed an expense, working alongside an accountant will be able to help you determine what is classifiable under limited company expenses.
Any Questions? Call Us FREE! 0808 168 3676
Didn't find what you were looking for? Call FREE to speak with on our helpful advisers, we're here to answer your questions...