When you’re busy trying to run your business, it’s hard to keep track of what
business costs and expenses are eligible for tax relief - and that might mean that
the company ends up paying too much tax!
In this A-Z guide for limited companies, FreeAgent’s Chief Accountant Emily Coltman
lists some common business costs and expenses, and walks you through HMRC’s
guidance for claiming tax relief on these costs.
From Accountants Fees to claiming for your Zebra, this guide has it covered!
Remember that even if you are the sole director of a limited company, you and your company are considered separate legal entities by Companies House and HMRC - so if we say that “the company” can claim tax relief that means it goes in your company’s accounts. Alternatively, if we say that “you” can claim tax relief, that means it goes on your own personal tax return.
If we say “you can claim from the company”, that means the company can pay you back for costs that you incur personally without either of you paying more tax. These costs are usually allowable for tax relief in the company’s accounts.
When we say that something is, or might be, a ‘taxable benefit’, it means that even if the company can claim tax relief on the cost by putting it in its accounts, the company and/or the employee may have some additional tax and/or National Insurance to pay on the cost of the item.
As always, if you have any queries about an expense you want to claim for, feel free to contact us for information tailored to your particular circumstances.