13 allowable expenses your limited company is not claiming

Want to cut your limited company’s tax bill? Like most of us, you’ll probably be worried you are paying too much tax, while other companies are saving thousands!
In this episode of Whiteboard Thursday, Nicholas Campion walks you through 13 allowable expenses you are probably not claiming, such as bicycle mileage, mobile phones, client entertainment and your Christmas Party.
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Website: www.1stformations.co.uk/
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#claimexpenses #UKcompany

[@hawkdene123]

There are more than 13 reasons why I love this channel!

[@1stformations]

Hopefully we can create many more reasons in the future, James.

[@graemedonnelly2039]

The bicycle mileage and Christmas Party were the 2 allowable expenses that surprised me the most. Great presentation - another great addition to the series!

[@1stformations]

We're glad you found our presentation to be of a high standard, Graeme. Yes, we have found many of our readers were unaware of bicycle mileage and Christmas Party allowances.

[@darkdancer1983]

Would have never thought there are so many different type of expenses to claim. Game changer!

[@1stformations]

Glad you found our video useful, Peter!

[@paultavener1544]

This is very useful, I was not aware of all the expenses that can be claimed, I suspect I wont be alone, this is a great video - thank you!!!

[@1stformations]

Glad you found it useful, Paul.

[@TailoringTalk]

This is fantastic really. As a small business every penny counts and this video is an absolute must watch for any business owner.

[@1stformations]

Thanks Roberto - we agree, it's important small businesses try to claim as many allowable expenses as possible.

[@larryking9868]

Thanks for the exposition 1st Formations. Very useful information.

[@1stformations]

Glad you found our video useful, Larry!

[@Iliketrainsbrooooom]

This video should be part of any new business guide, I really feel that so many businesses are not claiming all the expanses as they should.

[@1stformations]

Nice tip Tommaso - we will take it under consideration. Have you checked out our Ultimate Guide to Starting Your Business - free to pick up in our checkout when purchasing a company?

[@PriscilaDexheimer]

Oh wow! I wasn’t aware of even half of them, great advice!

[@1stformations]

We're glad we were able to enlighten you on some important allowable expenses, Priscila.

[@kingdombreakthrough]

Really helpful for a new company. I knew about the more common expenses but not all of these 13. Thanks!

[@1stformations]

We're glad you found our video helpful. Yes, we find that some of these are missed when claiming expenses. If there are any other videos you think would be of use to you, let us know by leaving a comment!

[@anguspark2053]

Always good to get money saving advice, especially if you're running a business!

[@1stformations]

Thanks Angus! We are pleased you learned something. What would you like Nicholas and the team to cover next?

[@johncarpenter8651]

Great vid, interesting that entertainment costs are claimable.

[@1stformations]

Thanks John, glad you found our section on entertainment costs enlightening.

[@anjalidhulipala3362]

Such a helpful video!

[@1stformations]

We're glad you found our video helpful, Anjali. If you have any other topics you would like us to cover, just leave a comment and we'll see what we can do.

[@susanpowell7312]

This is brilliant.. thank you 😊

[@1stformations]

Thanks for your kind praise, Susan.

[@mirelapreda8812]

So basically you claim all your direct& indirect costs and only some personal expenses made by the Director are debatable..right?

[@1stformations]

Thank you for your comment, Mirela. Unfortunately, many direct and indirect costs are not applicable as allowable expenses, so you need to ensure you are not expecting to have some of your company's costs considered allowable expenses when filing your company tax return. The 13 allowable expenses we cover in this video are not exhaustive, but are 13 we find many business owners are unaware of.

[@marshallwilliams3531]

And full commitments what I'm dreaming of. You wouldn't get this from any other guy!

[@1stformations]

Never gonna give you up, never gonna let you down...

[@marshallwilliams3531]

@@1stformations 🤣🤣 😎

[@samb3151]

Another hugely valuable video!

[@1stformations]

Thanks Sam - glad you enjoyed it.

[@sabakebede6056]

Wasn't aware of some of these valid points! Brilliant vid :)

[@1stformations]

Great news! Which points interested you the most?

[@diramemouhsine3931]

this is very helpful, can what do you mean by "claiming" does that goes as tax return ? what about working as freelancer and you have set an office and upgrade broadband ?

[@1stformations]

Thank you for your question Dirame! If you work as a freelancer and set up an office in your house, you could claim the proportion of the house the room represents (i.e. if it is 1 room of 5 rooms in the house excluding bathrooms - 20%). If you have upgraded broadband, but there is personal usage and the broadband already existed in some form, as you imply by the word 'upgrade', you can claim the % of broadband that is used for work, but not the whole broadband cost. Does this help?

[@diramemouhsine3931]

@@1stformations Oh, didn't know I can do that. much appreciated. thank you so much

[@1stformations]

@@diramemouhsine3931 You are very welcome! If you have any other comments or questions please do let us know!

[@amarapindrews3214]

I love your videos. One question if you are the only employee can you just pay yourself through dividends or do I have to be on payroll?

[@1stformations]

Thank you, Amara. We are glad you love our videos! You can indeed pay yourself through dividends instead of paying yourself a salary if you wish to. Dividends can be paid to directors and other shareholders, according to the proportion of shares that they hold and is done on company profits. What other topics would you like us to cover?

[@danielk348]

This is awesome 🏆💥

[@1stformations]

Really good to see you enjoyed it, Zippy!

[@lukefootner4451]

Some great tips here, thank you! One question around Business Gifts: Do all the same rules apply for clients too? If I take a client out for dinner as a gift, does that count? And must the bill be under £50? Or can it be over but just that the expense claim is only effective up to £50 of the bill?

[@1stformations]

Thanks for your query, Luke. Generally speaking - taking a client out for dinner is not likely to constitute a gift for the purposes of allowable expenses. However, we do recommend you pay using the company account, as this can lower your income tax payment due if you pay using a personal card. With regards to the £50 rule - you can claim up to £50 for each event, even if the bill comes to more than £50. I trust this information is of use to you. Regards, John at 1st Formations

[@itsasmiththing4749]

Are they all fully deductible from the tax bill, or just the 20% you would have paid in VAT?

[@1stformations]

Thanks for your comment. They are deductible against the Corporation Tax your limited company would pay on its profits. Do you own a limited company?

[@itsasmiththing4749]

@@1stformations Yes, newly formed to purchase buy to let property in.

[@1stformations]

@@itsasmiththing4749 That's great to hear. As you have a newly formed company, I would recommend taking a look at our post-incorporation company services to see if there is any way we can help you concentrate on your business while we take care of your business admin. Our post-incorporation company services can be found here: www.1stformations.co.uk/company-services/ Are there any of these you may be interested in?

[@papetall9183]

Hello i am from canada i would like to open a business in the UK with a Revolut or Wise Transfer bank account.

[@1stformations]

Hi PAPE! Great news, we're more than happy to help you out with that! We have specialised packages designed specifically for our international customers; please check out the website in the description, or send us an email on [e-mail]! Look forward to hearing from you!