In my latest video, I talk about ten things you can claim as a business expense for tax purposes. If you haven’t got a limited company, you can register one on Companies House for about £15. You can have a company overnight. If you have a company, you can then start keeping the receipts for certain things that you are probably paying for anyway. The more money you make in your business the higher the tax bill will be, but if you have allowable expenses you can bring that cost down.
Even if you are at the beginning stages of your business, it is worth doing this. You may make a loss in your first year but you can carry your expenses over.
A little disclaimer before we get into this: I am not an accountant and I cannot give tax advice. This is just some of the things I do based on the advice of my accountant. The items herein may not be suitable for your individual situation and whether they are allowable expenses may rely on context not fully explained here. Before doing anything related to tax, please speak to a qualified tax accountant.
With all that said, here is a summary of 10 things you can claim as a business expense. For additional details, I highly recommend watching the full video here.
1. Office space in your home
If you have a space you use solely for work in your home, you can claim some of the rent you pay for the property as a business expense.
2. Computer/Laptop/Mobile Phone
If you use your computer or laptop for business purposes, you can claim these as business expenses. You can claim your mobile phone as a business expense as well providing that it is what you use it for. Of course, this doesn’t mean you can claim for items used simply for personal purposes however.
3. Your car/petrol
If you are using your car for business you can claim some of the costs as a business expense. If it is an electric car, you can claim up to 100% of the price. When you are driving for business purposes, you can claim the cost of petrol as an expense. For example, if you are a deal sourcer, you can claim the petrol cost for viewing properties.
In some business circumstances, you can claim the cost of a meal as a business expense. Of course, this doesn’t cover non-business meals and there are some limitations even when it comes to business.
If you are flying for business purposes, for example to attend a conference related to your business, you can claim the flights as a business expense. You can also claim other costs such as hotels.
6. Branded clothes
If you have branded promotional clothes made with your business logo on, to be used as part of your business, you can claim them as a business expense.
7. Training programmes
If you attend training programmes related to your business, you can claim them as a business expense. Even if you haven’t started your limited company yet, you can still claim for them once you have. You have up to 6 years to do so.
8. Staff wages
If you employ staff for your business, paying them is a business expense. You can make your business more passive for you by hiring staff and claim it as an expense!
9. Accountancy fees
To maximise your lawful tax deductions and stay on the right side of HMRC, you will need an accountant. Luckily what you pay your accountant is considered a business expense.
10. My swim spa!
My £30,000 swim spa in my garden was tax deductible because I have arthritis in my knee!