25 Business Expenses You're Probably Missing
If you’re anything like most business owners, you’ve probably looked at your bank statement and wondered, “Can I claim that?”
The answer is… maybe!
One of the biggest misconceptions we come across is that business expenses only include obvious things like laptops, office furniture and printer ink. In reality, there are lots of everyday costs that could be tax deductible if they’re used for your business.
Missing legitimate expenses could mean you’re paying more tax than you need to, and nobody wants to give HMRC a tip.
Here are some of the most commonly overlooked business expenses.
Working from home
If you run your business from home, you could claim a proportion of your household costs. That includes electricity, heating, water, council tax, mortgage interest or rent and internet costs, depending on how you work.
After all, if your dining table has become your office, meeting room and coffee station, it might as well earn its keep.
Business mileage
Using your own car for business journeys? Those miles soon add up.
Trips to clients, networking events, the post office or suppliers can all count, provided they’re for business purposes. Keeping a mileage log can make a surprising difference by the end of the tax year.
Mobile phone and internet
If your phone is used for business, you may be able to claim some or all of the cost.
The same goes for your internet connection if you’re regularly working from home. Just remember there needs to be a genuine business element.
Software subscriptions
These days most businesses rely on software to keep everything ticking over.
Think Microsoft 365, Canva, Xero, Adobe, Zoom, Dropbox, Mailchimp or your favourite scheduling app. If you’re paying for it because your business needs it, it’s likely worth considering as an expense.
Training and courses
Learning new skills isn’t just good for your business. It can also be tax deductible if the training helps you maintain or improve skills you already use in your business.
Sadly, that pottery class you’ve always fancied probably doesn’t count if you’re an electrician.
Professional memberships
Many professional subscriptions, trade memberships and industry bodies are allowable expenses.
If belonging to an organisation helps you carry out your work, don’t forget to include those annual fees.
Marketing and advertising
Your website, Facebook ads, Google ads, business cards, branded clothing, flyers and photography can all fall under marketing expenses.
Getting your business noticed costs money, so make sure you’re keeping those receipts.
Office supplies
Stationery isn’t exactly the most exciting purchase, but pens, notebooks, printer paper, postage, envelopes and packaging materials all count when they’re used for your business.
Yes, even that drawer full of notebooks you promised you’d use one day.
Insurance
Business insurance, professional indemnity insurance and public liability insurance are all common business expenses.
It’s not the most glamorous spending you’ll ever do, but it’s definitely worth remembering.
Bank charges
Business bank account fees, payment processing charges and transaction fees often get forgotten because they’re deducted automatically.
Small amounts throughout the year can quickly add up.
But don’t claim everything…
Before you start searching the house for receipts from three years ago, it’s worth remembering that not every purchase is tax deductible.
HMRC expects expenses to be incurred wholly and exclusively for your business.
That means your weekly food shop isn’t suddenly a business expense because you answered an email while making a sandwich.
Likewise, your family holiday doesn’t become a business trip because you posted one Instagram story about work while sitting by the pool.
Nice try though.
Keep good records
The easiest way to make sure you don’t miss expenses is to keep on top of your bookkeeping throughout the year.
Save your receipts, use accounting software where possible and don’t leave everything until January. Your future self will be incredibly grateful.
Not sure if something is claimable?
That’s exactly what we’re here for.
Every business is different, and the rules can vary depending on whether you’re a sole trader or a limited company.
If you’re ever unsure whether something qualifies, ask us. We’d much rather answer a quick question than discover months later that you’ve missed hundreds of pounds’ worth of legitimate expenses.
After all, paying the right amount of tax is important.
Paying more than you need to? Not so much.
2 Sisters Accounting Ltd
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Swapping to 2 Sisters Accounting is one of the best business decisions I've ever made. Beth is a financial wizard, and capable of explaining complex accounting rules in a way that makes sense. I no longer feel confused about my finances, feel confident in managing my cash flow, and know that Beth is doing an amazing job at managing the more complicated stuff so I don't have to think about it. I would 100% recommend them for everyone.
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I moved over to 2 Sisters Accounting about 3 years ago after getting fed up with accountants that I had to constantly chase and didn't feel were on my side as a customer, I'm so glad I did. Jessie and Beth exude professionalism, but also understanding and kindness. They are communicative, responsive, and demonstrate business savvy, and even more importantly, empathy. Being a small business owner is always challenging, but having someone like 2 Sisters in your corner allows you to get on with doing the work, knowing that there is someone you can trust to give you could advice and have your best interests at heart when it comes to all things tax, VAT, and company accounts. Highly recommended.
The 2 sisters team have bought so much peace of mind and time back to me within my business. They take care of everything for me, making sure I'm always ahead with my filings and that I know everything going on. They make things super simple, I'm always happy with their response times and my business wouldn't be the same without them. Would recommend to any small business!
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