Tax deductible expenses! It’s not a phrase to quicken the pulse and for some people, it sounds a bit daunting, so what is it all about?
Running a small or medium business means that as well as generating income for your enterprise, you also have to spend money.
There’s a saying that you speculate to accumulate, and sometimes that means shelling out on a piece of equipment that’s necessary for your business. Chances are that for those big ticket items, the cash will come from your business account.
But what about a box of pens, car parking or overnight accommodation while you’re away visiting clients?
It’s quite easy to run up some expenses that come out of your own pocket. Also, there are times when you buy in services that you don’t see as a business expense, such as buying the services of a consultant.
Legitimate business expenses are tax deductible. That means you can claim the cost against your tax bill, which effectively means you’re lowering the amount you’ll need to pay HMRC. And who doesn’t want to do that?
The general rule is that expenses must be “wholly, exclusively and necessary” for the business. However, HMRC rules can be complex and are often based on concepts such as the “fairness” and “reasonableness” of expenses claimed.
So are you claiming all the expenses you can? Here, we’ve put together a short list of just 30 items.

There are many more examples, but the list would go on for pages. If you’re unsure ask your accountant, or get in touch with us if you don’t have one. Whether you’re the director of a limited company or a sole trader, you need to know what’s available to you.

30 tax deductible expenses

Accounting fees
Advertising
Banking fees
Business Travel – Article and Video
Business association membership dues
Charitable deductions made for a business purpose
Computers and tech supplies
Consulting fees
Conventions and trade shows
Costs of goods sold
Depreciation
Equipment
Exhibits for publicity
Franchise fees
Freight or shipping costs
Furniture or fixtures
Health insurance
Equipment repairs
Interest
Mortgage interest on business property
Parking and tolls
Rent
Social media advertising
Software and online services
Subcontractors
Telephone
Utilities
Video equipment for business channel, such as YouTube
Website design

Guidon Group Ltd

t: 01642 927265                                  e: info@guidongroup.co.uk

Gloucester House, 72 Church Road
Stockton-on-Tees. TS18 1TW

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Guidon Group

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