A UK study in 2018 revealed that £962m worth of expenses are unclaimed every year. With more of us working at home or going it alone in business, it's crucial that you know the many business expenses that you can claim. Take a look or download our A-Z guide to business expenses to start saving today.

1. A-Z GUIDE:
BUSINESS EXPENSES
BUSINESS GUIDE

2. ADVERTISING AND MARKETING
You can claim tax relief on advertising, promotional and
marketing costs for your business.
Although, please do be careful as some costs that you
may consider "marketing" (like taking a client out to
lunch) may be considered as "entertaining" by HMRC.
Unfortunately, HMRC will not allow you to claim tax relief
for entertaining clients - there is no tax relief available on
the cost of entertaining anyone other than bona fide
payroll employees.

3. BANK INTEREST & OVERDRAFT CHARGES
- Business accounts
If your company has a business bank account in its own name, it can claim
tax relief on the interest payments and charges.
- Personal accounts
Interest and charges on a personal bank account or credit card are not
allowable for tax and shouldn't be included in your company accounts. However,
if you are registered as Self-Employed and you use a personal account for your
business banking, then how much interest and charges you can claim tax relief
on will depend on how much you use the account for business. If the business
use of the account is minimal, then you shouldn't claim any tax relief on these
costs, but if you use the account mainly for business then it's worth including
at least some of these costs and always be prepared to discuss this with a
visiting HMRC inspector.
BROADBAND
If you work from home and don't have a separate broadband contract for your
business, you can claim the full cost of all of your business use of your home
broadband (using an itemised bill), and a percentage of the line rental. If you
pay a Fixed fee for your broadband, you should claim based on the business
percentage of your usage.

4. COMPUTER EQUIPMENT & ELECTRONICS
If the company provides computer equipment that you can use for business and
more than an "insignificant" amount of private use, the company will
have to pay extra National Insurance as this is considered a taxable benefit.
If you are registered as Self-Employed and you buy new computer equipment
that you're going to use partly for work and partly for personal use, you will have
To work out how much you're going to use it for business and then include only
that proportion of the cost in your accounts.
If you already own a computer, chair, etc. and want to bring it into your
business, you can claim tax relief for its market value at the point you
brought it into the business. Check eBay for similar items and then include that
cost in the company's accounts. Don't forget that if you are going
to carry on using the equipment privately too, HMRC would consider this as a
taxable benefit.
COUNCIL TAX
If you work from home, you can claim a proportion of your council tax cost.
However, you may have to pay business rates rather than council tax depending
on how much you use your home for business. For further information on home
business expenses you can claim please visit the HMRC website.

5. DOGS
Some dogs (and other animals) are classed as "Working animals",
for example farm working dogs, gamekeepers' spaniels, police dogs, or
army bomb disposal dogs. If you own a working animal of any kind,
the animal must be used primarily or exclusively for working purposes,
such as drafting, herding, or guarding.
These working animals are treated in the business books as capital
assets that qualify for capital allowances and feeding and caring for
them would be tax-deductible expenses. So, you could put food for
these animals, veterinary fees and so forth into your business's profit
and loss account as business costs and save tax.

6. ELECTRICITY
If you work from home and are the only one who works for your company
or you are registered as self-employed, you can claim back a percentage of your
household electricity costs. This amount will be based on how much you use
your home for business and how much for non-business.
However, if you work from home and are not the only one who works for your
company, the costs you can claim are more complex and you should consult
your accountant about this. If you have office space, your company can claim
the full cost of heating and lighting for your business premises for tax relief.
EVENING DRESS
If you have to wear evening dress in order to carry out your work (for
example, if you are a bagpipe player and you wear your full Highland dress),
this isn't classed as "everyday Wardrobe." so you can claim tax
relief for it. Get your glad rags on!

7. FLIGHTS
You can claim the full cost of air travel if the purpose of your journey is
solely for business reasons. If your journey is for mixed purposes (as in both
business and private), then you can only claim any costs that you can clearly
separate from the private part of your journey. If you can't separate
the journey, you can't claim any of the costs.
FOOD & DRINK
If you have no employees, you are not able to claim food and drink expenses
you incur while working from home or in your usual office space. However, if
you do have employees, you can provide basics such as tea, coffee
and biscuits - or provide a free canteen - which you can claim tax relief
for.
As a self-employed person, or if you have a mobile business, you can claim
very little of the cost of food and drink you buy when you're out and about on
business.
FREEAGENT (and other software packages)
You can claim the cost of using a package like Freeagent for your business
accounts. The Cardens team can help you get up and running with the
software.

8. GAS
If you work from home, just like council tax,
electricity and rent, you can also claim tax relief on a
percentage of your gas bill. The amount will be
based on how much you use your home for business
and how much for non-business.
However, if you work from an office you can claim
the full cost of your heating and lighting bills for tax
relief.

9. HOTEL ACCOMMODATION
When travelling away on a business trip you can claim tax relief
on the full cost of your hotel or bed and breakfast
accommodation providing the trip is primarily for business and
not for non-business.
However, if your trip is for both business and non-business, you
need to be able to clearly separate your business costs from your
non-business costs in order to claim tax relief. If you cannot
clearly separate these costs you cannot claim tax relief for any
part.

10. INSURANCE
Tax relief can be claimed on the full cost of insurance
for business, for example contents insurance for an
office, or a specialist home business policy. However,
if your insurance has a mixed purpose, for example,
private medical insurance for the business owner you
cannot claim tax relief.

11. Overalls
Gloves
Boots
Helmets
(CLINIC) JACKETS
Clinic jackets as worn by a doctor, dentist, chiropractor etc... are one of the
few clothing items that are allowable for tax relief as they are considered
wholly and exclusively for business use.
As a rule, an employee cannot get tax relief for the cost of clothing they wear to
work - but there are some exceptions. For example, if you are a Policeman,
Fireman, or if you work in a sector like the building trade industry you must
wear a uniform and/or protective clothing like:
If you have to pay for the cost of repairing, cleaning or replacing this
type of specialist clothing yourself and your employer does not reimburse you,
then you are entitled to tax relief. However, you cannot claim for the initial
cost of buying this clothing.

12. LIGHT & HEAT
If you work from home, just like council tax, and rent, you can also claim tax
relief on a percentage of your light and heating bills (e.g. electric, gas and
oil). The amount will be based on how much you use your home for business and
how much for non-business.
However, if you work from an office you can claim the full cost of your lighting
and heating bills for tax relief.
LOAN INTEREST
When paying monthly loan payments, the full cost will not be offset
against business profits for tax relief in the year. Only the interest proportion
gets consideration and the rest of the cost is dealt with in a different way.
If an item purchased (using loan funds) is used purely for business use,
then you will be able to claim the whole amount for tax relief. However, if
there is any private use of an item bought, then the interest will be split
accordingly between business and non-business expenditure.

13. MEDICAL EXPENSES
Unfortunately, you can pretty much never claim tax relief for any medical expenses
incurred even if they are for an injury sustained at work. There are however
exceptions, HMRC gives an example of an experienced radio performer who has her
teeth straightened to allow her to work in TV. It is generally best to consult your
accountant who will be able to advise you on this topic.
MOTOR EXPENSES & MILEAGE
There are numerous guidelines set by the Inland Revenue about what can and
cannot be claimed for tax relief regarding motor expenses. The rules also vary
according to whether you trade as a sole trader, partnership or limited
company.
The most common method by far is to include the business mileage by applying a
pence per mile as set out each year by the Inland Revenue. Use our fuel cost
calculator to assist your expenses.

14. OFFICE STATIONERY AND ACCOMMODATION
You do not need to report or pay tax and National Insurance
on equipment, stationery and supplies for your employees, if
they are required by employees to carry out their work.
Different rules apply for homeworkers. Visit the gov.uk
homeworking guide for more information.
You can provide equipment, stationery and supplies policy as
part of a salary sacrifice arrangement. It won’t be exempt;
therefore, you will need to complete a form P11D. Rules apply
to arrangements made after 6 April 2017.

15. POSTAGE
Costs incurred for postage used wholly for business purposes can be
claimed for tax relief.
PRINTING
You can claim tax relief on printing costs related to business. Good
examples are business cards, letterheads and posters.
PROFESSIONAL FEES
You can claim the full cost for professional fees invoiced to the business
(for example, the fee incurred for using a bookkeeper or your
accountant.) There are however some exemptions within this topic so
do please consult your accountant who will be able to advise you
further.
PARKING FINES
Unfortunately, you cannot claim tax relief for parking fines even if one
was issued while you were travelling on business.

16. RESEARCH & DEVELOPMENT
The process of inventing and solving the associated problems is called research and
development (R&D). Companies can more than double the tax deduction given for
the costs of R&D.
The new 'stuff' could be a product, a material or a process which has been changed
or improved. For example, if you find a way of speeding up a production line, or
changing the process to cope with a new type of material, the work to achieve that
aim is R&D which should qualify for the tax relief.
REPAIRS
If you rent or own office space and incur costs for repairs you can claim tax
relief for these costs. However, do be aware that there are guidelines set by
HMRC as to whether certain expenses are repairs or property improvements.
If you are unsure, before planning to do some work contact your accountant to
find out the tax treatment of the specific work you plan to carry out. You can
claim tax relief for minor repairs to business equipment and sundry repair
items used for business such as batteries and light bulb costs.
If you work from home, you may be able to claim tax relief on repair costs for
your property. If the repair relates solely to the part of your property that
is used for business then you should be able to claim the full cost of the
repair. However, if the repair is in a part of the property that has mixed use,
for business and non-business, then the cost is subject to the business use of
that room.

17. SEMINARS
You can claim tax relief on costs for attending a professional seminar. This
includes the registration cost as well as any other costs that are
directly linked to attending the seminar. For example, travel, accommodation
and subsistence.
However, if you combine a seminar trip with a personal excursion (as in a
holiday) unless you can clearly separate the business costs from the non-
business costs then you will not be able to claim any of the costs.
SUBSCRIPTIONS
Professional subscription costs can be claimed for tax relief if the membership
of the society or institute allow you to use a qualification and you use that
qualification for your business. For example, an HR Manager can claim their
membership cost for the Chartered Institute of Personal Development (CIPD).
You can also claim tax relief on other subscriptions, for example membership of
the local Chamber of Commerce, if they are solely used for business purposes.

18. TELEPHONE
Telephone and mobile phone costs are another expense that you can claim tax
relief for. If your telephone and/or mobile phone are used solely for business
purposes, then you can claim tax relief on the full line rental and monthly
payments.
If you work from home and use a home telephone or personal mobile phone
partly for business related calls, then you can claim these calls as you will be
able to clearly separate these using an itemised bill. You can also claim a
percentage of the line rental costs based on how much you use your phone for
business.
TOLL BRIDGES & PARKING
When travelling on business, if you incur tolls or car parking fees, you can
claim tax relief on the full costs. However, as mentioned in Parking Fines you
cannot claim tax relief for the costs of fines.

19. WEBSITES
If you build a website for your company, you may be able to claim tax relief on
the costs if you can demonstrate that the financial benefits outweigh the cost
of the build. Please visit the HMRC website for further details on this or seek
advice from your accountant.
WATER RATES
If you work from home, just like gas and electricity, you can also claim tax
relief on a percentage of your water bill. The amount will be based on how
much you use your home for business and how much for non-business.
However, if you work from an office you can claim the full cost of your water
bills for tax relief.

20. XYLOPHONE
If you are a musician or other entertainer and need specific equipment
in order to carry out your work - for example if you are a professional
Xylophone player - you can claim tax on the cost of your instrument.
X-MAS STAFF PARTIES
Unfortunately, you cannot claim tax relief for entertaining clients.
However, HMRC do state that if you employ staff and you are hosting
any of the following:
a) An annual event
b) The event is open to all staff
c) The event costs less than £150 per guest present
...HMRC may deem this a qualifying event and it will not be a
taxable benefit for your staff.

21. ZOO VISITS
Yes, that's right! If your visit to the zoo is solely
for business purposes you could claim tax relief
on the cost of your entry fee. For example, if a
game designer went to the zoo to watch how
monkeys moved so they could replicate this
movement in a video game character, this could
be considered as a business expense and would
then be allowable for tax relief.

22. GET IN TOUCH
Our aim is to always save you time and money,
with jargon-free expertise, great communication
and fixed fees, tailored to your personal and
business needs.
01273 739592 - info@cardens4u.co.uk