What expenses can I put through the company?

Claimable expenses

As a freelancer you may have a business set up as a limited company, which can be a tax-efficient to earn your money as a freelancer. As a limited company owner you can put certain expenses through the company, again making it tax efficient. A good freelancer accountant can help you figure out what is the most tax efficient way to run your business and they can help you with company expenses. Here are some of the expenses that you can put through your company 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

Home office expenses

If you work from home, use is calculated as follows: add up all household running expenses, for example, heat, light, insurances, council tax, and 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.


More on freelancer accountants and accounts for freelancers.