A Guide to Limited Company Expenses

What can you claim for?

Updated: 19 March 2024

It can be a minefield in understanding what costs you can and can’t put through your business to obtain corporation tax relief. As an accountant, I’m often asked questions on this topic so to help clarify where the line is we have put together this guide which covers most expenses a typical recruitment company will incur.

The statements in this guide are based on the law at the date of publication. Tax and company law change frequently and you should not rely on this guide. It’s ALWAYS a good idea to seek professional advice if you have any questions or concerns over what constitutes a tax deductible expense.

For an expense to be “legitimate” as per the HMRC’s definition it must be incurred “wholly & exclusively” for the purpose of your business.

It’s good to bear in mind that any expenses that have been claimed will have an impact on your company’s profits, this will include the amount of corporation tax the company has to pay when your company’s tax return is submitted.

Expenses which hold a personal and a business element are NOT usually allowable for corporation tax relief. Also most things your company pays for which are for the enjoyment of one of your employees will attract “benefit in kind” charges.

I hope you find this guide useful, if you have any questions please feel free to contact me.

Marie Pegram

Please download ‘A Guide to Limited Company Expenses’ using the form below.

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