Claiming Business Expenses
The only expenses that can be claimed from a Company (some rules are different if self-employed) are legitimate business expenses.
HMRC will only allow expenses that are:-
‘wholly, exclusively and necessarily incurred in the performance of your duties’
HMRC will disallow any expenses that do not meet this rule and do not fulfil each of the three criteria wholly, exclusively and necessarily.
It is essential to obtain and retain receipts for all expenses incurred in order to be able to justify the expense if questioned by HMRC.
Expense items that cannot be claimed include the following:
- Office Clothing such as business suits (except safety clothing)
- Personal car service and repairs
- Personal Life Insurance
- Training Courses not related to your employment – e.g. plumber claiming skiing instruction
- Private club subscriptions – e.g. Golf Club membership
- Items mainly for personal use – e.g. televisions, cameras, Hi Fi
Please remember business expenses should only relate directly to your business. Personal expenses that do not wholly relate to the business of your company should not be claimed. However you may be able to claim a proportion if there is a split between business & personal use.
Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice.