Knowledge Centre

The question, “What expenses can I claim?” is the most frequently asked question by new contractors and freelancers. The answer is not a simple one as there are certain criteria an expense must cover. HMRC’s line is it must be “wholly & exclusively” for the purpose of the business.

Expenses that may be claimed:

-   Salaries
-   National Insurance Contributions
-   Employer pension contributions
-   Accommodation (when away from home on business)
-   Subsistence (when working away from home)
-   Business travel (including mileage and public transport)
-   Accountancy fees
-   Home office costs
-   Company formation fees (this does not decrease your tax liability)
-   Postage and stationery
-   Mobile telephone costs
-   Business computer equipment and software
-   Broadband internet
-   Technical books and publications
-   Business entertaining (this does not decrease your tax liability)
-   Subscriptions to approved professional bodies
-   Bank charges

This is by no means an exhaustive list of all business expenses.

Take a look at the different expenses pages in the menu on the left.

IMPORTANT

To avoid potential issues with items and services that you claim as business expenses, you must ensure that any contract is taken out in the company name and not your personal name (unless claimed under the home office expense calculation). You must also ensure that the payment comes from the company bank account and not your personal account.

Remember to always keep receipts and invoices.