Business Premises

These expenses are related to your business location:

■ Rent: The cost of renting office space or business premises.

■ Utilities: Bills for electricity, water, gas, and other services used in your business location.

Office Supplies and Equipment

These expenses are essential for running your business smoothly:

■ Stationery: Costs for items like pens, paper, envelopes, and other office supplies.

■ Printer Ink: Expenses related to printer cartridges or toner.

■ Office Equipment: Includes computers, printers, furniture, and other assets used in your office. You can claim costs associated with purchasing or maintaining these items.

Software

Everyone uses software for many aspects of the business, therefore software costs relevant to your business are allowable business expense.

Employee Salaries and Pension

These expenses relate to your workforce:

■ Wages and Salaries: Payments made to employees, including regular wages, bonuses, and commissions.

■ Employer National Insurance Contributions: The employer's share of National Insurance contributions.

■ Pension: Pension contribution by the employer, for the benefit of the employees, is allowable business expense.

Business Insurance Premiums

Tax deductible business insurance is restricted to insurance for the protection of the trade, not the shareholders. These are costs associated with insuring your business:

■ Liability Insurance: Premiums paid to protect against legal claims.

■ Professional Indemnity Insurance: Coverage for professional errors or negligence.

■ Property Insurance: Insuring business premises, equipment, and assets.

Financial charges

Bank charges directly related to your business fall under this category. Normally banks charge a monthly bank account maintenance fee with additional transactional charges. If your business accepts card payments then you can claim the card payment charges under this category as well. 

Accountancy Fees

Accountancy fees for preparing annual business Profit and Loss Accounts, is an allowable business expense. It is vital to have an annual review of the profitability of the business, to know if your hard work is making money. We can help in this regard.

Clothing Expenses 

This category includes costs related to work attire. If you wear uniforms or need protective clothing specific to your job (such as safety gear), these expenses can be claimed. However general clothing is not allowed, which includes shirts, trousers, ties, suits, socks and shoes. These items are not considered to be business expense, even if they are necessary for business.

Business Related Travel Expenses

These expenses cover costs incurred during business travel. Here's a breakdown:

■ Transportation: Includes train and bus fares for travel necessary for work-related trips.

■ Mileage: If you use your own vehicle for business travel, you can claim mileage expenses. Keep a log of the miles driven for work purposes.

■ Accommodation: Hotel stays or lodging expenses during business trips.

■ Important Note: Remember that expenses related to personal travel or leisure are not tax deductible. Similarly international travel to holiday destination or country of origin, will not be allowed as business travel.

■ Commuting to work: Normal travel between home and office is considered to be commuting, which is not tax deductible. 

Marketing and Advertising Costs

These expenses help promote your business:

■ Advertising Campaigns: Costs related to marketing campaigns, online ads, or print media.

■ Website Development: Expenses for creating or maintaining your business website.

■ Marketing Materials: Printing costs for brochures, business cards, and promotional materials.

Goods Bought for Resale

If your business involves selling products, the cost of purchasing stock or raw materials that you intend to resell can be claimed as direct cost of sales.