Claimable expenses are any expenses that are incurred during the course of your business's day-to-day activities. Typically, these would include:
- Travel expenses to your clients' premises
- Setting up a website
- Business mobile phones and landlines
- Business internet
- Laptops and other equipment purchased for business use
- Sustenance (such as lunches) for when you're working away from your usual place of business
- Home working expenses (if you regularly work from home) in proportion to the amount of space and the time that you spend working from home
- Printing and advertising
An expense is generally not claimable when you derive a personal benefit from the purchase. For example, a suit that you purchase for work could be used for other occasions as well, so it's typically not claimable.
The effect of claiming back an incurred expense is that you save on the Corporation Tax payable on your company’s profit. The current Corporation Tax rate is 20%.
For advice or more information, chat to any of our consultants or with your personal accountant.
If you are the director and/or a shareholder of a limited company, you can pay yourself a portion of the company's after-tax profits in the form of dividends. Limited company salary dividends are not taxable as long as your taxable earnings fall below a certain point (currently around £43,000 per annum).
Because of the tax-free allowance on dividends, they are one of the most tax-efficient ways of withdrawing funds from the company. However, depending on your circumstances and future plans, you may be able to retain funds in your company for withdrawal at a later (and more tax-efficient) date. Your best bet is to discuss the options with your personal accountant or one of Sable International's financial advisers.
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