Limited Company Expenses What can be Claimed

In a Nutshell

Not out of pocket

In a Sentence

Some of the money you spend on your limited company is tax deductible - it can be exempt from being taxed.

Everyone's the same when it comes to expenses. The same tax rules apply whether you are running your own limited company or using the services of a contractor umbrella company. There aren't any special arrangements available.

If you're outside IR35 and contracting through your own limited company means you're likely to have more costs, therefore you're likely to be able claim more expenses. The system is meant to be equal and fair.

Claimable Business Expenses

• Your salary and the salary paid to any staff
• Travel costs which are in line of duty of your contract
• Overnight accommodation where your contract takes you away from home
• Business telephones calls
• Professional subscriptions
• Professional refresher/updating training
• Professional services costs
• Computer hardware and software

Play Fair

As a general rule of thumb, remember that claiming an expense is not a way to make a profit. The benefit of expenses is purely to ensure you are not out of pocket on actual business matters.

HMRC are very hot on all expenses claims and in particular have a keen eye on the contracting market. Simply play fair and you'll stay out of trouble.