Overview
If you’re ltd, your business will have various running costs. You can deduct some of these costs to work out your taxable profit as long as they’re allowable expenses.
Example: Your turnover is £40,000, and you claim £10,000 in allowable expenses. You only pay tax on the remaining £30,000 – known as your taxable profit.
Costs you can claim as allowable expenses
These include:
A
Assets made available to an employee
B
Business travel mileage for employees’ own vehicles
C
Cash sum payments to employees
Compensation for injuries at work
Computers loaned to an employee
Coronavirus (COVID-19) tests and equipment
Credit, debit and charge cards
E
Employee liabilities and indemnity insurance
F
H
I
Income tax paid on directors’ behalf
L
M
Meals for employees and directors
Medical or dental treatment and insurance
O
Office and workshop equipment and supplies
Offshore transfers in the oil and gas industries
P
Private use of heavy goods vehicles
R
S
Scholarship for an employee’s family member
School fees for an employee’s child
Sporting or recreational facilities
Subscriptions and professional fees
