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There’s enough for you to remember when running your business, so how do you remember what expenses you can and can’t claim for?
Unclaimed expenses can mean your business has to pay more tax than required. Making sure you are up to date with the facts so that you save every penny possible for your business is critical. Don’t let the tax man take more money off you than needed!
As accountants we know the ins and outs of what you’re entitled too and we also realise that our clients aren’t always aware of what they can claim for. The general rule for expenses is to make sure they are “wholly and exclusively” for business. If your purchases have a part personal use, then you might have to pay more tax and national insurance.
So here we outline the top 3 expenses which get missed when submitting your return.
1. Key Man Life Insurance -
Key Man Life insurance is a policy befitting the business in the event of a sudden loss of the key executive in the business. It is to cover the cost of employing another key person or to implement strategies to save the business. The cost is allowable against business tax and as the policy belongs to the business there is no benefit-in-kind charge to the key person.
2. Mileage -
The approved mileage allowance payments are 45p for a motor vehicle for the first 10,000 business miles reducing to 25p thereafter in a tax year. Where an employee is claiming approved mileage, for using their own vehicle and they also carry a passenger(s) for business journeys, each additional person in the vehicle can claim 5p per mile. Surprising? Many business owners don’t realise this.
3. Home Office -
With so many businesses still working from home this one may be more useful than you think! Up to £6 per week or £26 per month can be claimed from 6th April 2020. If your home expenses are more than this or you spend a considerable amount of time at home for working then you can claim other expenses, but check first.
If these expenses have been going unnoticed and getting missed from your tax return, now is the time to take action. I have put together an expenses guide for limited companies to ensure that you no longer miss out on vital expenses for your business. If you’re interested to hear more about how to save your business money, you can download it here:
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