Any costs you incur that are, as defined by HMRC, ‘wholly and exclusively for the purposes of your business’ are classed as expenses and can be claimed for. The golden rule for all expense claims is that you can only reclaim for expenses which have been incurred wholly, exclusively and necessarily in the course of running your company.
Additionally, you cannot claim for expenses which have a dual purpose (i.e. for both personal and business use).
You should always ensure that you keep all of your receipts and invoices in order to prove that any claims you have made have been legitimate.
If you are in any doubt over what you can and can’t claim through your limited company, please speak to Grip Business Team.
In principle, your company can deduct from turnover any type of expenses which aren’t specifically disallowed by HMRC, or capital expenditures. Here are some of the main business expenses you can set off against Corporation Tax (unless otherwise stated):
If you incur some of these expenses personally, we advise you to keep a record of them and reclaim on monthly basis (i.e. reimburse from your business account to personal account). Please contact us if you require an Excel template to manage your expenses.