What Business Expenses Can You Legally Claim?
What Business Expenses Can You Legally Claim?
Get business expenses wrong, and it can cost you twice: overpaying tax or landing in trouble with HMRC.
The good news? Most legitimate business costs are claimable if they meet the rules.
Hi, I’m Ali from Vertax Business Solutions.
One of the most common questions I hear from new business owners is:
“What expenses can I actually claim?”
The good news is that if an expense is wholly and exclusively for your business, it’s usually allowable for tax purposes. But there are important rules, and getting them wrong could lead to paying too much tax—or creating problems with HMRC.
Let’s look at some common examples.
1. Home Office
If you work from home, you may be able to claim a proportion of your household costs, such as electricity, heating, internet, or rent, depending on your circumstances. There are different methods available, and choosing the right one can make a difference.
2. Car and Travel
Business travel is generally allowable, but your daily commute usually isn’t.
You may be able to claim:
- Business mileage
- Parking fees
- Train fares
- Business-related accommodation
Always keep clear records of your business journeys.
3. Mobile Phone and Internet
If these are used for business purposes, you may be able to claim some or all of the cost, depending on whether the contract is personal or in your company’s name and how it’s used.
4. Laptop, Computer and Equipment
Computers, monitors, printers, office furniture and software purchased for your business are often allowable business expenses.
5. Meals
This area causes a lot of confusion.
Buying lunch because you’re at work is generally not an allowable expense.
However, meals while travelling for qualifying business purposes may be allowable.
6. Clothing
Everyday clothing—even if you wear it only for work—is usually not allowable.
However, uniforms, protective clothing and certain branded workwear may qualify.
The Biggest Mistake
Many business owners focus on claiming every possible expense.
I think that’s the wrong question.
The better question is:
“Am I keeping good enough records to prove my claims if HMRC ever asks?”
Good bookkeeping isn’t just about reducing tax.
It’s about understanding where your money goes, making better decisions and running a healthier business.
Final Thought
Don’t guess when it comes to expenses.
A small mistake today can become an expensive problem later.
If you’re unsure what your business can claim, speak to a qualified adviser before submitting your tax return.
I’m Ali from Vertax Business Solutions.
We help small business owners understand their finances so they can build stronger businesses with confidence.
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