Claiming expenses through a limited company is a worthwhile thing to do. The expense reduces the profit that you make and in so doing reduces the amount that is subjected to corporation tax. By putting your expenses through the company you are therefore reducing your company’s corporation tax bill.
It is, however, essential to remember that as owner of the company it is still your money that you are ultimately spending; so it’s not worth buying something just to reduce your tax bill!
Here’s a list of the most common expenses that you can claim when running your limited company:
- Travel and accommodation
- Mileage: be it by car, motorbike or bicycle
- Parking
- Communications: telephone, mobile & internet
- Use of home as office
- Salaries
- Pension contributions
- Print, post and courier
- Insurance
- Professional memberships*
- IT equipment
- Accountancy
- Stationery
- Training (for maintaining current skills)
- Professional journals and books
- Office party (up to £150 per employee per year)
- Childcare vouchers (up to £55 per week depending on individual situation)
- Bank charges
* Not all professional memberships are tax allowable
For more information on company expenses, visit our Comprehensive Guide to Limited Company Expenses.