Expenses FAQs
What Expenses Can I Claim?
The most common Expenses claimed through a Limited Company are as follows:
- Accommodation
- Bank Charges
- Computer Hardware
- Computer Software
- Equipment
- Eye Test
- Incidental Overnight Costs - Domestic
- Incidental Overnight Costs - International
- Journals and Magazines
- Mileage - Bicycle
- Mileage - Motor Cycle
- Mileage - Motor Vehicle
- Mobile Phones
- Postage
- Professional Membership Fees
- Insurance
- Stationery
- Subscriptions
- Subsistence
- Telephone
- Training Courses and Books
- Travel
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What are the Criteria for Claiming Expenses?
You can only claim an expense through your Limited Company if it meets the following criteria:
- It must be wholly and exclusively related to the business of the Limited Company.
- No personal benefit must be obtained from incurring the expense
*Note: Certain expenses have further criteria that have to be adhered to. Contact your accountant or phone 0808 141 2284 if you would like to discuss specific expenses that you would like to claim.
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What About Receipts?
You are required to keep invoices/receipts for all expenses that you claim. Should HM Revenue & Customs enquire about your expenses, you should be able to substantiate the expenses with these invoices/receipts. Where there is a name on the invoice/receipt, this must be the name of your Limited Company and not your own name.
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What is the Difference between Claimable and Reimbursable Expenses?
Claimable expenses are expenses that you have paid for, which are not reimbursed by your agency/client. You can claim these expenses from your Limited Company and your Company will get a corporation tax deduction for these expenses.
Reimbursable expenses are expenses that are reimbursed by your agency/client. This is normally agreed in your contract. These expenses have no tax implications for you or your Limited Company.
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What is the Effect of Claiming Expenses?
When you claim an expense, your Limited Company receives a corporation tax deduction for this expense. Since the corporation tax rate is 21%, your net pay will increase by 21% of the expense amount. (E.g. an expense of £100 will increase your net pay by £21). If you have any further queries regarding Accounting, Calculations or Expenses through your Limited Company please feel free to contact your accountant or phone 0808 141 2284.
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