You read that right. Your business can pay for your manicure, and it’s completely legitimate. Before you scroll away thinking this sounds too good to be true, stick with us. Because this is one of those things that most small business owners never find out, and it could make a real difference to how you think about your business expenses.
It all comes down to two things: CPD and trivial benefits. Let’s break both down.
What is CPD and why does it matter for your expenses?
CPD stands for Continuing Professional Development. In simple terms it means any training, learning, or development that is relevant to your work. And here’s the important bit, HMRC allows you to claim training costs as a business expense, as long as the training is wholly and exclusively for business purposes.
Most small business owners think of CPD as dry, formal courses. But the pathway can be more creative than you’d think.
As a business owner, investing in business coaching is completely valid CPD. From there, if you work with or consult businesses in the beauty industry, training in that space is a natural and legitimate extension of your professional development. Follow that pathway far enough and a nail technology qualification is a justifiable stop along the route.
Manicure. Paid for by your business. Legitimately.
Now we’re not suggesting you go and sign up for a nail course purely to claim it back, HMRC will see through that and it needs to be genuinely relevant to your work. But the broader point is this: CPD doesn’t have to mean boring. If the training genuinely relates to your business, it counts.
What are trivial benefits and how can you use them?
If the CPD route feels like a stretch for your particular business, there is a much more straightforward option, trivial benefits.
As a limited company director, you are entitled to receive gifts or perks from your company of up to £50 in value, up to six times per year, completely tax free. That’s up to £300 worth of treats annually that cost your business nothing extra in tax.
The rules are simple. The benefit must:
- Cost £50 or less
- Not be cash or a cash voucher
- Not be a reward for work or performance
- Not be written into your contract
A manicure ticks every one of those boxes. So does a facial, a massage, a nice meal, or anything else under the £50 threshold that isn’t directly tied to your performance as an employee.
You do need to be a Limited Company for this to work, sorry Sole Traders. You also need to be on the company payroll. If you’re an employee not a business owner, then you can work for a Limited Company or Sole Trader, but its mostly business owners that will ever read this!
Why does this matter?
Because most small business owners are leaving money on the table simply because nobody has told them what’s available to them. You work hard. Your business should work hard for you too.
The key with both CPD and trivial benefits is making sure everything is documented properly and that you’re clear on the rules before you start claiming. A good accountant will help you make the most of what’s available without falling foul of HMRC.
Want to make sure your business is working as hard as it can for you?
At 2 Sisters Accounting we help small business owners understand their finances, claim what they’re entitled to, and keep more of what they earn. If you’d like to chat through your expenses and make sure you’re not missing out, we’d love to help.