Some of the more common expenses are:-
• Company formation
• Accountancy fees
• Business travel and accommodation
• Postage for business
• Stationery for business
• Business telephone calls
• Mobile telephone and calls
• Salaries
• Employer’s N.I. contributions
• Contributions to an executive pension plan
• Business entertainment
• Equipment purchased for business purposes
• Motoring expenses using fixed rate allowances
• Computer software
• Technical books and journals
• Certain professional subscriptions
• Use of home as office*
• Company bank charges and interest
* If you work from home, use is calculated as follows: add up all household running expenses, i.e. heat, light, insurances, council tax, water rates. Divide this figure down by the number of main rooms in the house to give a cost of running the one room used for business purposes. This can then be claimed monthly or annually.
If you're working on a contract that is caught by IR35 then the only expenses claimable before calculation of the deemed salary are:-
• 5% of net sales
• Travel and accommodation expenses
• Pension contributions
• Certain professional subscriptions
You should, however, still record all business expenses incurred so that you may see the true of cost of running your Company.
