Tax tip #2 – Claim all your expenses

Navigating the intricate world of taxes can be a daunting task for business owners, especially following corporation tax increases. Every week, we will be sharing a tax tip to help reduce your tax bill ahead of your year-end.

Last week we dived into our first tip – the importance of claiming all possible reliefs and deductions. Today, let’s talk about a strategy that’s equally beneficial: making sure you’re not missing out on any business expenses.

Tax Tip #2: Claim All Business Expenses

The idea is simple but often underestimated – every penny you spend to keep your business wheels turning is a potential lifesaver when it comes to your tax bill.

So, what actually counts as an expense? Are there business expenses you are missing?

Expenses are what you spend to keep your business operating making them are tax deductible. Below we’ve shared some expenses you can claim for to reduce your tax bill:

• Employee Costs:
  • Salaries, wages, and bonuses
  • Employer National Insurance contributions
  • Pension contributions
• Travel and Accommodation:
  • Business travel expenses, including mileage or public transport costs
  • Accommodation costs for business trips
• Premises Costs:
  • Rent for business premises
  • Utility bills (gas, electricity, water)
  • Business rates
• Office Costs
  • Stationery and office supplies
  • Postage and delivery costs
  • Printing and copying expenses
• Equipment and Furniture:
  • Capital allowances for business assets (e.g., computers, machinery)
  • Repairs and maintenance of business equipment
• Training and Development:
  • Costs associated with employee training and development
• Marketing and Advertising:
  • Advertising and marketing expenses
  • Costs of developing and maintaining a business website
• Professional Fees:
  • Accountant’s fees
  • Legal fees for business-related matters
• Insurance:
  • Business insurance premiums
• Bank and Finance Costs:
  • Bank charges and interest on business loans
• Subcontractor Costs:
  • Payments to subcontractors for services rendered

• Investing in Vehicles
• Telephone/Mobile Usage and Costs
• Clothing Costs

We recently had a client who, after a pre-year-end review, realised they were missing out on some expenses. Here’s what they had to say about their experience:

“You think claiming expenses is just business 101. But really understanding that expenses are not just costs but potential savings on taxes has been a game-changer for our bottom line. A4G provided us with a comprehensive list of deductible items, shedding light on often overlooked areas like stock and office supplies, subscriptions, and even year-end bonuses. Their proactive approach in sharing tips on maximising our tax efficiency before our year-end has been instrumental in minimising our tax bill.”

So, as your year-end approaches and the ominous tax return deadline looms, make sure you’re not leaving any money on the table. Claim those business expenses, and let your spending become your secret weapon against the taxman. Your bottom line will thank you.