Part 2

What other traditional expenses can you claim?

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Whilst you can save a lot of money on your tax return with the Simplified Expenses, Capital Allowances and Cash Basis, there are also day to day expenditure that can help: 

1. Office, Property & Equipment

You will only be able to expense as office, property and equipment if you are planning to use the item for less than 2 years. If you expect to use the item for more than 2 years, you will need to refer to “Capital allowances”, on this link:  How to cut down on your taxes easily.

The stationery that you will be able to expense as Office, property and management are listed below:

  • Phone, mobile, fax and internet bills
  • Postage
  • Stationary
  • Printing
  • Printer Ink and cartridges
  • Computer software (for business use less than 2 years)
  • Computer software with regular payments to renew the license (for business use even if for longer than 2 years).

You can also expense rents, rates, power and Insurance which include:

  • Rent for business premises (maintenance or repairs of business premises and/or equipment)
  • Any associated rates (such as water/business rates)
  • Utility bills
  • Property insurance
  • Security
  • A portion of your rent or mortgage interest if you use your home as an office (as well as a portion of all the other associated bills such as council tax, house insurance, internet/ telephone use and utilities)

2) Travel

As explained in the part 1, the buying of a vehicle can be claimed via “simplified expenses”, “cash” or “capital allowance” but there are other things that you can claim back related to your travel:

  • Vehicle insurance
  • Repairs / Servicing
  • Fuel
  • Parking
  • Hire charges
  • Vehicle license fees
  • Breakdown cover
  • Train / Bus / Air / Taxi fares
  • Hotel rooms
  • Meals on overnight business trips

But there is a catch, there are things that you cannot claim:

  • Non-business driving / travel costs
  • Fines (too bad ;-) )
  • Travel between work and home

3) Clothing

No, you won’t be able to claim that dress that you have just bought for your wife, or this nice shirt for your husband ! Whilst you cannot claim expenses on everyday clothing (even if you wear it for work!) - you can claim allowable expenses for the following:

  • Uniforms
  • Protective clothing needed for your work
  • Costumes for actors / entertainers

4) Staff

There are a few things you can claim when you hire employees, which can be as follow:

  • Employee and staff salaries
  • Bonuses
  • Pensions
  • Benefits
  • Agency fees
  • Subcontractors
  • Employer’s National Insurance

Unfortunately, there are things you are not allowed to expense, such as expenses for carers or any kind of domestic help, such as nannies.


5) Reselling Goods

You cannot claim expenses for any goods / materials you have bought for private use, or for the depreciation of equipment. You can however claim allowable business expenses for:

  • Goods for resale (stock)
  • Raw materials
  • Direct costs from producing goods

6) Legal and Finance Costs

Accountancy, legal and other professional fees can all count as allowable business expenses, unless you used your lawyer to complain about your neighbor's dog.

The things you can claim for are:

  • Hiring accountants, solicitors, surveyors and architects for business reasons
  • Professional indemnity insurance premiums

The thing you cannot claim for are:

  • Legal costs of purchasing property / machinery (if you use traditional accounting, you can claim for these costs using Capital Allowance)
  • Fines for breaking the law
  • Insurance policy for your business, eg. public liability insurance

Also, if you’re using traditional accounting, you are able to claim for amounts of money you include in your turnover but won’t ever receive. You can only write off these debts if you’re sure they won’t be recovered from you customer in the future.


7) Marketing, entertainment and subscriptions

You can claim allowable business expenses for the following:

  • Advertising in newspapers or directories
  • Bulk mail advertising (mailshots)
  • Free samples
  • Website costs
  • Subscriptions to trade / professional journals
  • Trade body or professional organisa on membership if related to your business


You cannot claim allowable business expenses for the following:

  • Entertaining clients, suppliers and customers
  • Event Hospitality
  • Payments to political parties
  • Gym membership fees
  • Donations to charity (but you may be able to claim for sponsorship payments if you’re a limited company).


The last thing you might be wondering is, how can you store all your receipts and be 100% sure you won’t lose them? Well, you will be thrilled to know that we created an App for that, that is also 100% free, and available on the link below