What are allowed expenses?

To survive in business you need to be financially savvy and maximise efficiency within every area of your business whether it’s the amount of tax you’re paying or how you’re taking advantage of all of your business expenses. However, when it comes to expenses, did you know that there are certain expenses you can offset so you don’t have to pay them at the same time as the others? Here are just some of the expenses you can offset within your business so that you can save money:-


  • Stationery – office supplies are key to running a business, whether it’s your printing supplies, telephony equipment or even postage costs. These materials that you use day to day and are crucial to the daily running of your business can be claimed as expenses.


  • Charitable donations – known as tax relief, if your business is making any contributions towards local or national charities you can claim back up to 25% of your contributions. How you can make charitable donations as a business include through your will, from your wages as a director or via gift aid.


  • Unpaid invoices – unfortunately in business you may come across a client that hasn’t paid an invoice that’s due to you and in turn, this can affect your planned turnover so HMRC has taken notice of this and will allow you to claim for any ‘bad debts’ that haven’t been paid. However, these unpaid debts MUST be included in your turnover and must be properly calculated.


  • Marketing costs – a key area in your business is marketing, it’s how you get the message about your brand out there however effective marketing can tend to be rather expensive. That’s why HMRC will allow you to claim for costs such as website hosting, mail advertising and any costs involved in producing any ‘free samples’.


  • Clothing – if you need to buy any work-related clothing or protective clothing depending upon what industry you’re in, you can offset the entire cost of purchasing these goods against your annual tax bill.


  • Legal and financial costs – a business owner it’s probably likely that you’re going to need to hire an accountant or solicitor at some point, and as we all know these come at a cost. However, you can offset any costs associated with hiring the services of these professionals.


If you want to know more about the costs you can offset within your business and how you can ensure that your business is running as financially efficiently as possible get in touch with the team here D&K Accounting. We have a helpful A-Z guide that you may find useful.

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