Don’t get caught out by expenses
Expenses are one of the main perks that make the daily stresses of running your own business worth it.
There are plenty of allowances you can claim against your business to reduce your tax bill.
Business trip
If the trip is solely for business purposes then it could be claimed as a travel expense. But if you then decide to spend the weekend in Vienna with the family you would lose any relief as the trip would be deemed as personal.
Clothing
Looking the part is an important element for business. But in most cases, this will need to come out of your own pocket.
There are some industries where you can claim for the cost of clothing and equipment.
For example, tradesmen such as builders and doormen or those working with precious metals can claim for the cost of buying, repairing or replacing small tools as well as for cleaning, repairing or replacing specialist clothing.
But if you are just looking for a new suit you can’t claim the costs.
Entertaining
Putting lunch on the company card can be tempting, but you can actually only expense it if you are entertaining your own staff.
It is even more tricky if you don’t employ any staff and where it is just you and another director.
You can only expense food and drink if you were away from your usual place of work on a temporary basis, such as on a business trip.
Professional membership
You can reclaim tax you pay on fees or subscriptions to some approved professional organizations – but only if you must have membership to do your job or it’s helpful for your work.
We can help with your expenses
The best way to claim the right expense is to make use of a decent accountant.
If you want advice on how to claim for the right expenses and minimize tax.