What expenses can I put through my Limited Company company?

If your contract is caught by IR35 then the only expenses claimable before calculation of the deemed salary are:-

  • 5% of net sales
  • Travel and accommodation expenses
  • Pension contributions
  • Certain professional subscriptions

You should, however, still record all business expenses incurred so that you may see the true of cost of running your company.

Some of the more common expenses are:-

  • Company formation
  • Accountancy fees
  • Business travel and accommodation
  • Postage for business
  • Stationery for business
  • Business telephone calls
  • Mobile telephone and calls
  • Salaries
  • Employer's N.I. contributions
  • Contributions to an executive pension plan
  • Business entertainment
  • Equipment purchased for business purposes
  • Motoring expenses using fixed rate allowances
  • Computer software
  • Technical books and journals
  • Certain professional subscriptions
  • Use of home as office
  • Company bank charges and interest

 

Further reading: Contractor UK's Guides to Contractor Expenses and Tax deductible expenses for IT contractors.