Director Expenses, What can you claim
So what can a Director of a limited Company Claim?
Anything to do with running the buiness
Anything you do to support the business
The biggest expense you can claim is a home office. If you work from home, even if it is answering your email, raising invoices, planning the day ahead and sorting your expense out is claimable.
You can claim a percentage of your home office, a room you work in. this is based on the time you spend in your office (Room) and the number of rooms you have multiplied by the total cost of running your house.
For example, 3 bedroom house with lounge = 4 rooms. Cost £1000 per mot to run a house and use us one room 80% of the time. You can claim £200 per month as an expense, that £2,400 per year tax free!
You will however, need a leasing contract in place first to keep HMRC happy.
We have a Home Office Template and Leasing Contracts; call us now for more information.
When you out and about and pay for, say, travel (car/train), parking, lunch, a bottle of water, a pad and pencil out of your own pocket, all these are claimable expenses, as they are part of doing your job.
These expenses are claimable, keep your receipts and put the cost through your books.
This is easy with Xero as you can scan your receipts as you go along, making sure you don’t miss any
If you travel in your personal vehicle, you can claim mileage, 45 pence per mile, so do 10,000 miles a year, and you get £4,500 year tax-free.
All these expenses also have the benefit of reducing your tax bill, claim £10,000 in expenses and save £1,900 in Corporation tax too!