7 business expenses you might be forgetting to claim

Every pound you claim as a legitimate business expense is a pound you do not pay tax on. Yet most people we take on are under-claiming and quietly handing HMRC more than they need to. Here are seven expenses that are easy to miss.

1. Use of home

If you work from home, you can claim a proportion of your household running costs, or a simple flat rate. Most people forget this one entirely.

2. Mileage and travel

Business journeys in your own car are claimable at 45p a mile for the first 10,000 miles each year. Parking, tolls and public transport for business count too.

3. Phone and internet

The business share of your mobile and broadband is an allowable expense. If the contract is in your company name, better still.

4. Software and subscriptions

Accounting software, design and productivity tools, cloud storage, professional memberships and trade publications are all deductible.

5. Training that maintains your skills

Courses and CPD that keep your existing skills current are usually allowable. New skills for a brand new trade are treated differently, so check first.

6. Bank charges and interest

Business account fees, card charges and interest on business borrowing are small amounts that add up and are easy to overlook.

7. Pension contributions

Company pension contributions are one of the most tax-efficient moves a director can make, and they reduce your Corporation Tax bill at the same time.

A quick word of caution

Expenses must be wholly and exclusively for business, and the rules differ depending on whether you are a sole trader or a limited company. If in doubt, ask. Getting this right is exactly what your dedicated accountant should be doing for you.