Limited Company Expenses
A limited company can claim various expenses to reduce its taxable profits. Here are some of the common types of expenses that a limited company can typically claim;
Business Overheads.
This includes expenses directly incurred for running the business, such as office rent, utilities, insurance premiums, and business rates.
Employee salaries, taxes and benefits.
Wages, salaries, bonuses, pensions, employer National Insurance contributions, and other employee benefits are generally tax deductible.
Travel and subsistence.
Costs related to business travel, including mileage, public transport costs, hotel accommodation, meals, and parking fees, can be claimed. However, expenses for commuting between home and a regular place of work are not usually allowable. This is seperate to company vehicle costs (see below).
Vehicle expenses.
If a company owns or leases vehicles, it can claim expenses related to fuel, maintenance, repairs, vehicle insurance, and other costs directly associated with business use. Personal use of a company vehicle should be accounted for via a P11d form (benefits in kind).
Professional services.
Fees paid to accountants, lawyers, and other professional service providers for business related purposes.
Office supplies and equipment.
Expenses for office supplies, stationery, computer hardware and software, furniture, and other necessary equipment used for business purposes.
Marketing and advertising.
Costs associated with advertising, marketing campaigns, website development, graphic design, and promotional materials.
Training and professional development.
Expenses for employee training courses, seminars, conferences, and professional memberships relevant to the business.
Business related subscriptions and memberships.
Costs for trade association memberships, professional organisation fees, and subscriptions to industry specific publications can be claimed.
Research and Development (R&D).
Costs incurred in carrying out qualifying research and development activities directly related to the company's trade or industry may be eligible for enhanced R&D tax relief.
Capital Costs.
Assets owned by the business may be eligible for capital allowances depending on the nature of the asset. Capital allowances can be utiltised to reduce a company’s corporation tax liabilites.
It's important to maintain accurate records and receipts for all expenses and allowances claimed.
Additionally, it’s advisable to consult with a qualified accountant who can provide specific guidance based on your company's circumstances and ensure compliance with HMRC regulations.
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