Allowable business expenses – simple ways to save money

10 January 2024

Allowable business expenses – simple ways to save money

As a business owner, you are probably aware of some of the expenses that you could claim back on in your yearly Self-Assessment tax return.

However, many are unaware of the simple, smaller costs that they could claim which could provide some much-needed cash in harder economic times.

So, rather than tightening your belt, why not widen the net of expenses you are claiming for?

Office costs

Office costs are a fundamental expense for most businesses.

This includes everyday office supplies like stationery, printing costs, and postage but it can also cover software that is crucial for your business operations.

Whether you’re buying paper for the printer or a new business management software, these costs can be claimed if they are exclusively for business use.

The GOV.UK site has a lot more information on these Capital Allowances but make sure you read to the bottom of this article first for more important information.

Travel costs

If you travel for business purposes, these costs can also be claimed.

This includes expenses such as fuel, train or bus tickets, taxi fares, and airfares.

Accommodation and subsistence costs, like hotel rooms and meals during business trips, are also claimable.

However, travel between your home and regular workplace is not typically considered a business expense unless it’s a temporary work location.

Staff costs and training courses

Staff costs are probably one of the most significant expenses in running your business.

This includes salaries, bonuses, pension contributions, and National Insurance Contributions (NICs) for your employees.

Costs for subcontractors and temporary staff can also be claimed for but you should ensure that all staff payments are for business purposes and are documented properly before proceeding.

Training courses for your staff that are relevant to your business can also be claimed as an expense.

This includes courses that improve your skills or the skills of your employees in their current roles.

However, courses for new skills or training for a different role or business are not typically considered allowable.

Costs of your business premises

If you operate from a business premises, the associated costs are allowable expenses.

This includes rent, utility bills (like gas, water, and electricity), property insurance, and maintenance costs.

However, if you work from home, you can only claim a proportion of these costs based on how much of your home is used for the business.

When to speak to an accountant

Each of these expenses must be documented accurately and be strictly for business purposes to qualify as tax-deductible.

As such, we always recommend you consult with a tax professional to ensure compliance with HM Revenue & Customs guidelines.

As accountants, we have an insider’s perspective on the way that tax works and can advise you on the right course of action for mitigating these liabilities.

If you are planning to claim expenses, speak to our team first.

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