Are you claiming all the business expenses you’re entitled to? Many business owners overlook legitimate deductions, leaving money on the table. In this guide, we’ll highlight some commonly missed expenses and show you how to claim them properly—helping you reduce your tax bill and keep more of your hard-earned cash.
Commonly Overlooked Business Expenses
Home Office Costs
If you work from home, you can claim a portion of your household expenses, such as heating, electricity, water, internet, and even rent or mortgage interest. The amount you can claim depends on the space used for business and the time spent working from home.
HMRC also offers a simplified flat rate if you don’t want to calculate individual bills—ideal if your home office use is minimal.
Mileage and Travel Expenses
Using your personal vehicle for business trips? You can claim 45p per mile for the first 10,000 miles and 25p per mile after that. This covers fuel, maintenance, and wear and tear.
Don’t forget about other travel-related costs like train tickets, parking fees, and tolls.
Professional Development
Courses, workshops, and seminars directly related to improving your business skills are fully deductible. Whether it’s learning new software or brushing up on leadership skills, investing in yourself can lower your tax bill.
Office Supplies and Equipment
From pens and paper to laptops and software, any items you use solely for business purposes are claimable. Even subscriptions to industry publications count.
Charitable Donations
Donations made through your business to registered charities can reduce your Corporation Tax. Just make sure the donation doesn’t result in a personal benefit or loss to your business.
Make Use of Trivial Benefits
Trivial benefits are small perks you can give to yourself or employees, like a birthday gift, flowers, or a meal out. As long as each benefit costs £50 or less, isn’t cash (or a cash voucher), and isn’t a reward for work, it’s completely tax-free and doesn’t need to be reported to HMRC.
Read Trivial Benefits blog here.
How to Claim These Expenses
Keep Detailed Records
Store receipts, invoices, and mileage logs. HMRC may ask for proof, so it’s best to keep these for at least six years.
Use Accounting Software
Tools like Xero or QuickBooks can help track and categorise expenses, making life much easier come tax season.
Consult an Accountant
Rules around expenses can be tricky, and mistakes might land you with penalties or missed savings. An accountant ensures you’re claiming everything correctly and legally.
Conclusion
Claiming all eligible business expenses isn’t just about saving money—it’s about making sure your business is running as efficiently as possible. A regular review of your costs, paired with professional guidance, can make a significant difference to your bottom line.
As the saying goes, “Take care of the pennies, and the pounds will take care of themselves.”
Not sure if you’re claiming all the business expenses you’re entitled to? Book a call with me today, and I’ll help you identify and claim all eligible deductions.
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