What expenses can I put through my Limited Company?

If your contract is caught by private sector 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 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 more!

Find out more about these different types of contractor expenses here

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

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Written by Chris Deakin

Chris started his career in accountancy in 2009 working in general practice, providing bespoke advice to SME and individuals. He made the move into contractor accounting in 2014 and has specialised ever since.
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