Navigating business expenses: a quick guide
Starting a business brings questions, especially about expenses and how they affect your taxes. It's essential to know which costs are considered allowable to maximize your tax savings. This guide aims to simplify that process, focusing on common expenses and the principle that expenses must be incurred wholly and exclusively for your business. Let's make navigating business expenses clearer and simpler for you.
Maximising Home Office Expenses
Your home office is an essential part of your business, and it's important to know how to claim its use correctly.
Use of home office
Claim a flat rate per month based on hours of business use:
Hours of business use per month | Flat rate per month |
|---|---|
25 to 50 | £10 |
51 to 100 | £18 |
101 and more | £26 |
Essential office costs
When it comes to other office essentials, only specific costs are allowable.
- Office Furniture: Ergonomic and practical furniture for a productive workspace.
- Internet: Keep connected with claimable internet service costs.
- Computer Software: Keep your systems updated with the latest software.
- Computer Accessories & IT Costs: Modernize your office with the latest tech.
- Mobile Telephone: Necessary business calls are claimable.
- Office Landline: Claim costs for a busines-only line, or business calls on a o personal line.
- Stationery: Essential supplies for daily operations.
- Postage: Sending business mail is coverd.
- Website Costs: maintain your online presence with allowable website expenses.
- Staff Training: Invest in your team's growth with claimable training expenses.
- Seminars: Stay ahead by attending relevant seminars.
- Staff Welfare: Boost morale with allowable welfare expenses.
- Annual Event Allowance:Up to £150 per employee for team events.
Simplifying Travel expenses
When you're on the move for business, keep track of these essential travel costs to claim:
Travel Essentials:
- Parking Fees
- Train & underground fares
- Airline fares
- Taxi fares
- Vehicle rentals
- Toll road charges
Business Mileage Allowances:
For cars and vans, motorcycles, and bikes, rates vary with mileage.
Hours of business use per month | Flat rate per month |
|---|---|
25 to 50 | £10 |
51 to 100 | £18 |
101 and more | £26 |