Business Expenses Uk Limited Company

The number one rule to bear in mind for claiming business expenses is that you can only reclaim expenses that have been incurred wholly and exclusively while running your limited company.

Business expenses uk limited company. Entertaining includes hospitality of any kind and expenditure on business gifts. Business equipment should be reserved for the sole use of the. Most of the costs you incur from running your business are allowable such as office equipment salaries and business insurance.

That means your corporation tax bill to hmrc goes down. As a director of your limited company you can claim reimbursement of certain business entertaining expenses from your company. As expenses are exempt from tax claiming expenses correctly could affect your tax bill and may even increase your take home pay.

Typical limited company expenses. For many new business owners there can be a lot of confusion about what qualifies and what doesn t as expenses. Claiming tax relief on a mobile phone.

On some occasions you may pay for business expenses personally which you are reimbursed for later by your limited company. Limited company expenses are used to reduce the level of profitability in your company accounts. Example your mobile phone bills for the year total 200.

The majority of limited company expenses can be offset against your company s corporation tax liability although there are some exceptions including business entertainment. If an employee has more than one handset or handsets are provided to family members who are not. It is worth noting that shared use of the equipment e g.

As long as an expense is allowable you can deduct it from your revenue to calculate your taxable profit. Using your laptop as the family computer at weekends means it is not a deductible expense. Hmrc expenses rules state that the company can provide staff with one mobile phone for business purposes which is exempt from tax on the individual as a benefit in kind bik and a legitimate allowable expense against corporation tax rules apply though.