Expert accountancy and bookkeeping services for small Limited Companies

Travel is one of the most common areas of confusion for limited company directors. Can your company pay for journeys to clients? What about travelling from home? Hotels? Meals? Mileage? The basic rule is: Business travel can usually be paid or reimbursed by your company tax-free. Ordinary commuting cannot. The important part is understanding the difference. Directors are treated as employees For travel expense purposes, company directors are generally treated in the same way

Many limited company owners ask the same question: “Can I put this through the company?” It is a sensible question, but the answer is not always yes or no. For a company expense to be allowable for Corporation Tax, it normally needs to be incurred wholly and exclusively for the purposes of the company’s trade. This is one of the most important rules for company expenses. It affects what the company can claim, what may need to be disallowed, and whether a cost could create a p

Many limited company directors ask whether the company can pay for clothing. This may include suits, shoes, branded clothing, uniforms, protective clothing or outfits needed for work. The answer depends on the type of clothing and how it is used. The key point is that ordinary everyday clothing is not usually tax-free just because it is worn for work. For limited companies, there are usually two questions to consider: Can the company claim Corporation Tax relief? Will the clo

Business gifts are a common area of confusion for limited company owners. You may want to send a thank-you gift to a customer, give samples to potential buyers, provide small branded items, or give a gift to a member of staff. But the tax treatment depends on who receives the gift, what the gift is, why it is being given, and whether VAT has been claimed. The starting point is simple: Most business gifts are treated like business entertaining, which means they are not normall

When a company pays for a business cost, many small business owners ask: “Can I claim this through the company?” That is an important question. But there is another question that is just as important: “How much tax will this actually save?” A company tax deduction does not mean HMRC pays for the cost. It means the cost reduces the company’s taxable profit, which can reduce the Corporation Tax due. How much it saves depends on the company’s marginal rate of Corporation Tax. Wh

Salary and dividends are not the only ways to take value from your limited company. A limited company can provide certain benefits to employees, including directors, without creating an Income Tax or National Insurance charge, as long as the rules are followed. This can be very useful for small business owners because the company may pay for something directly, claim Corporation Tax relief where the cost is allowable, and the director or employee may receive the benefit tax-f

A Guide for Limited Company Directors Working From Home If you run your limited company from home, you may be able to claim some of the costs of using your home for business. However, this does not mean you can simply put part of your mortgage, rent or household bills through the company. There are three main options available to directors: HMRC’s approved homeworking allowance Reimbursement of actual additional household costs Charging your company rent under a non-exclusive

As a limited company director, understanding the intricacies of tax relief for travel and incidental costs can be daunting. However,...

If the rules around social functions are followed, staff events like your end-of-year party, or your summer barbecue are tax-deductible...

With greater use of home-working now the norm for many UK businesses, it’s important to think about the deductible expenses that you may...

The UK is taking significant steps towards a cleaner and greener future by implementing clean air charges in various cities, including...