How to claim business expenses through your Limited Company

Knowledge base from Boox

By Jonathan London on 16th September 2014

How to claim business expenses through your Limited Company

Download guide

Please enter a First Name

Please enter a Last Name

Please enter a valid Email Address

Please enter a valid Mobile/Phone Number

Data protection: We take data very seriously and will not share your details with anyone else. If you wish to receive marketing communications from Boox please tick this box.

You can change your preferences at any stage by clicking on the 'Manage my preferences' link at the bottom of our emails. By continuing, you agree to our Privacy Policy.

How would you like to receive communications?

Phone*

Yes
No
Select Yes or No

Email*

Yes
No
Select Yes or No

SMS*

Yes
No
Select Yes or No

Post*

Yes
No
Select Yes or No

If you run your own business, some of the costs you incur to operate can be claimed back as a business expenses. Any expense you claim must be in line with HMRC’s guidelines and legislation. Put broadly, this means that all business expenses claimed should be ‘wholly and exclusively’ related to items that directly apply to your job role and profession.

Why claim Business Expenses?

Any business expenses you incur as part of your work can be reclaimed through your Limited Company, and are taken from your income before Tax and NI contributions are calculated – therefore reducing your tax liability.

However, the rules on what you can and can’t claim can be a little complex, so it’s wise to get specialist advice before you go and spend thousands on some new equipment. If an item is split between your business and personal use (e.g. a mobile phone), you are normally able to reclaim tax relief on the business portion of the cost.

Remember it’s also important you retain your receipts for any purchases to prove they are legitimate. In the event of an inspection, if you do not have receipts HMRC will assume the expense is not a valid company expense.

Allowable expenses to claim

Our downloadable guide details some of the different expense types you should look to reclaim as an independent contractor working through a Limited Company.

Why is it so important to claim properly?

No one is exempt from the scrutiny of HMRC. If the tax office decides to investigate you then you must co-operate with it. The bottom line is that you could become the subject of the HMRC’s attention at anytime. Therefore it’s important to ensure that you have taken care of all your taxes and expenses in the correct and proper fashion.

Whether you’re new to freelancing or just want to go over some of the finer points with regards to what you’re eligible to claim back, our guide will make things easier for you. Simply click on the link at the top of this page to download our guide to claiming expenses through your limited company.

Was this article helpful?

Yes
No

Disclaimer
Although we attempt to ensure that the Information contained in this publication is accurate and up-to-date at the date of publication it may not be comprehensive, we accept no liability for the results of any action taken on the basis of the information they contain and any implied warranties, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement and accuracy are excluded to the extent that they may be excluded as a matter of law.

View our latest blogs

Take a look at our recent blogs below.

We’re here to help

Discuss your business and accountancy
needs in detail with our friendly team with
absolutely no obligation.

Call our friendly team on 0808 168 0422 or

Request a call back

(Open 8.30am to 5.30pm Monday to Friday)

Emily Ewin New Client Manager
Emily Ewin New Client Manager