Expenses you may be missing out on as a limited company
As a limited company director you may also find the pages below on what expenses you could claim helpful:
- Top ten expenses to claim as a limited company
- A guide to self-employed expenses
- Self-employed expenses: what you can and cannot claim
As a limited company director one of the benefits available to you is the ability to claim as an expense, costs which are solely and exclusively for your business. Expenses are exempt from tax and so could affect the amount of tax that you pay, which may in turn affect your take home salary.
To make sure that you are claiming all the expenses that you are entitled to, Easy Accountancy has put together this guide to some common expenses that you may be missing out on.
Magazine subscriptions, books and journals could be claimed as an expense if they are relevant to your business.
For example, if you are working in as a Chef a subscription to BBC Good Food magazine might be deemed relevant as it could be a source of inspiration and help you stay up-to-date with the latest trends and techniques.
Building a website
The cost of building a website could be claimed as a business expense. However, in order for this claim to be valid you need to expect to earn more money through the website than the website will cost to build.
Website costs can be difficult to determine and so it is a good idea to speak to your accountant to check that the cost of building a website for your business is eligible to be expensed.
The cost of entertaining your employees through events such as your company Christmas party might be eligible to be claimed as an expense if it meets the following criteria:
- It is an annual event
- The event is open to all staff members
- The cost is less that £150 per person
These days most of us spend the vast majority of our working day staring at a screen. If you use a computer at work then you may be able to claim the cost of an eye test as an expense.
However, you are only able to claim the cost of the eye test and any follow up treatment that is required such as glasses or contact lenses will not be classed as an expense.
Gifts intended for those who are not employees could be eligible to be claimed as a business expense if they meet the following criteria:
- The item cannot be vouchers, food, drink or tobacco
- The item should cost less than £50
- The item should be clearly marked with your business logo
If you are a director of your own limited company then you might be able to claim tax relief on your pension contributions as long as you are using an approved HMRC pension scheme.
As a limited company director you are probably well aware of all the travel expenses that you are entitled to claim in terms of your car and public transport costs.
However, what you may not be aware of is that you are entitled to claim a mileage allowance of 20p per mile if you choose to cycle to your business meetings.
It may also be worth taking part in a lift share if you know you are going to be onsite for a period of time, because you may be able to claim an extra 5p per mile when you have a passenger in your vehicle.
If you have any questions regarding what you can and can’t claim as an expense then it is always beneficial to talk to your accountant to make sure that all your expense claims are legitimate and you are not missing out on any valuable tax saving advice.
For more information or to ask a question on expenses then contact one of the accountants at Easy Accountancy on 0500 234111/01442 275767 or email firstname.lastname@example.org.
If you are a sole trader find out more about what expenses you can claim by visiting the pages below: