Stage 5 – Claiming Business Expenses
Your company is entitled to claim tax relief on the expenses that it pays whilst providing its services or selling its goods. The expenses will reduce the profits that it pays tax on and ultimately reduce the amount of tax payable. The expenses should be for business use and you should never include or try to claim any personal expenses.
The type of expenses that you should be looking to claim for may include the following.
Accountancy Fee’s
Business Travel
Equipment
Subscriptions
Insurance
Office Rent and Utilities
Pension payments
Salaries and Wages
Keeping a record of these expenses to include in the accounts should be done in a systemised manner. Software such as Receipt Bank make this very easy. You take a photo of the receipt on your phone and submit it to the software, and it will extract all the key data out for you and send it to your accounting software such as Xero or Quickbooks.
You can also keep a record of any business mileage travelled using Tripcatcher, this will again let you record your mileage on your mobile and send them directly to your accountancy software.