If you are the Director of a Limited Company and incur expenses then they can be claimed from the company providing they have been incurred ‘wholly and exclusively’ for the purpose of trade.
Some of the most frequent expenses claimed are:
If you incur expenses travelling to client sites in order to fulfil contractual obligations, these costs can be claimed from the company. This is providing that the travel is to a temporary place of work where you go to perform a task of limited duration (not ordinary commuting). Public transport tickets can be claimed for, as can taxis providing the use is not excessive.
If an own car is used for business travel then a mileage allowance can be claimed from the company to cover the costs of fuel, insurance, depreciation and other running costs of the vehicle.
In cases where it is necessary to overnight away from home in order to fulfil contractual obligations at a client’s site then the costs incurred can be claimed from the company.
If working in a temporary place then the cost of lunch can be claimed. However this must be in the form of a pre-packed sandwich or a meal at a café.
If staying overnight then an evening meal and breakfast can also be claimed for.
Use of home as office
If part of your home is used as an office where administrative duties are carried out in order to run the business or where you perform duties for the client then an allowance can be claimed. This can be claimed at a flat rate and therefore no receipts are required.
The cost of entertaining a potential future client or extending a contract with an existing client can be claimed for from the company but expenses of this nature are not deductible for Corporation tax. These costs should be of a reasonable amount and the company should be expecting to generate revenue as a result.
For further information on these or other expenses can be claimed for contact AJR & Co Ltd to arrange a free 30 minute consultation.