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In order to make claiming expenses as simple as possible we've but together this handy list to show you what expenses you can claim when operating as a Sole Trader or Limited company.
Expense
Sole Trader
Ltd Company
Additional notes
Expenses for working from home
Hours of business /month:
Flat rate /month:
HMRC’s flat rate of £6 a week
https://www.ipse.co.uk/articles/expenses-claim-working-from-home
25 - 50
£10.00
51 - 100
£18.00
101 or more
£26.00
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Expense
Sole Trader
Ltd Company
Additional notes
Working from home costs (not flat rate)
✓
✓
You can claim any expenses incurred wholly and exclusively for business purposes – e.g. furniture, printing, computer software
Travel
✓
✓
Hotels, transport, food, etc.
Staffing
✓
✓
If you subcontract work out, pay bonuses or have a pension, tax-deductible expenses (TDE) apply.
Social media and other advertising costs (websites, mailing, etc.)
✓
✓
If you’re using social platforms solely for the purpose of your business, keep your invoices and claim the cost as an allowable business expense.
Stock
✓
✓
If business requires stock
Protective gear
✓
✓
This one’s only applicable if you are required to work somewhere which could potentially be hazardous
Training and courses
✓
✓
Gifts for employees and clients
✓
✓
allowance known as a ‘trivial benefit’, which allows you to give small gifts (under £50) to employees and directors. There’s no limit on the number of ‘benefits’ you provide, as long as they don’t exceed £50 at a time or £300 in total over the year.
Eye tests
✓
✓
You can claim the cost of your annual check-up
Cycling miles
✓
✓
calculate the mileage and you could be entitled to up to 20p per mile.
Magazine subscriptions
✓
✓
The cost of forming a limited company
✓
✓
Bank charges
✓
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You can expense the cost of any bank charges, overdrafts, interest on business loans and even leasing payments. If you’re a sole-trader or you use a cash-based accounting system, you can claim up to £500 back for each financial year.
Use of your home internet
✓
✓
for all the times you’ve used your broadband for emailing back and forth with your client and finding work, it’s an allowable cost.
Telephone/mobile expenses
✓
✓
if you work through a limited company, it is advisable phone and internet bills should be in the company’s name, however business phones and internet usage can be charged to the company without incurring BIK.
Car expense - mileage
✓
✓
This is currently 45p per mile for the first 10,000 miles (per year) and 25p per mile thereafter.
Car expense – Actual cost
✓
✓
This method requires a little bit more work as you will need to record all motor costs including repairs, insurance, MOT, and petrol
Car leasing or renting
✓
✓
In theory leasing a car should be easier as it is likely you would hire it solely for business purposes.
Memberships
✓
✓
Membership costs to professional bodies
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