Read our full guide to broadband expenses here. Otherwise, it is impossible to split personal and business use. This is allowable, but only if the broadband contract is in the name of the company. Bank ChargesĪny charges or interest related to financial accounts in the company’s name. The cost of a regular company event, such as a Christmas party, or the sum of several annual events, as long as the cost per attendee isn’t one penny over £150 each. The costs of promoting your business – both expenses relating to professional services provided, plus any material costs, such as producing promotional literature. If you need to stay away from your permanent residence, whilst on business, reasonable accommodation costs are allowable. Here are some of the most common limited company expenses, with links to further sources where relevant. We highly recommend checking with your accountant if you have any questions or concerns over what constitutes a legitimate (tax-deductible) expense. On some occasions, you may pay for business expenses personally, which you are reimbursed for later by your limited company. Typically, your company will pay directly for many of the expenses listed below. which have a personal and business element are not generally allowable.Īnd if your company pays for anything which is for the private enjoyment of use of an employee, it will attract a ‘benefit in kind’ charge, subject to Employers’ National Insurance Contributions 13.8% (after November 6th 2022), and income tax paid by the employee. In order for an expense to be ‘legitimate’ as per HMRC’s definition, it must have been incurred “wholly and exclusively” for the purpose of the business.Īny allowed expenses will reduce your company’s profits, and therefore the amount of Corporation Tax the company has to pay when your accountant submits your annual company tax return.Įxpenses which have a ‘duality of purpose’, i.e. There are many types of expenditure you will incur whilst running a limited company, however which expenses can you legitimately claim against your company’s tax bill? Company expenses – in a nutshell
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