Running a business comes with many costs, but did you know that claiming all your allowable business expenses can help reduce your tax bill?
Many business owners unintentionally miss expenses they’re entitled to claim, meaning they pay more tax than necessary. Understanding what you can claim—and keeping accurate records—is an important part of running a successful business.
What are allowable business expenses?
HMRC allows businesses to deduct expenses that are wholly and exclusively incurred for business purposes.
These expenses reduce your taxable profit, meaning you only pay tax on the profit you’ve actually made.
Examples include:
- Office supplies and stationery
- Business insurance
- Professional subscriptions
- Accountancy fees
- Telephone and broadband used for business
- Business mileage and travel costs
- Marketing and advertising
- Website hosting and software subscriptions
- Computer equipment
- Training directly related to your existing business
Expenses people often overlook
Many small businesses forget to claim:
- Home office expenses (where applicable)
- Parking charges while travelling for business
- Bank charges on business accounts
- Postage and courier costs
- Cloud software subscriptions
- Protective clothing or uniforms
- Small tools and equipment
- Professional memberships
Every business is different, so it’s worth reviewing your records regularly to make sure nothing is missed.
Keep good records
HMRC requires businesses to keep accurate records of income and expenses.
We recommend keeping:
- Receipts
- Invoices
- Bank statements
- Mileage logs
- Digital copies of important documents
Using accounting software or cloud bookkeeping can make this much easier and helps ensure you’re prepared if HMRC ever requests evidence.
A quick reminder
Not every expense is allowable.
Items used for both personal and business purposes may need to be apportioned, and some costs—such as client entertaining—are generally not tax deductible.
If you’re ever unsure whether something qualifies, it’s always best to seek professional advice before making a claim.
How Mays Accounting Services can help
At Mays Accounting Services, we help sole traders, landlords and limited companies make sure they’re claiming the expenses they’re entitled to while staying fully compliant with HMRC requirements.
We’ll help you:
- Identify allowable business expenses
- Keep accurate bookkeeping records
- Prepare tax returns with confidence
- Stay compliant with current HMRC guidance
Getting your bookkeeping right throughout the year can save time, reduce stress and help ensure you don’t pay more tax than necessary.
Need advice?
If you’d like help reviewing your business expenses or keeping your records organised, contact Mays Accounting Services today for friendly, professional support.