23 Jun 15 Business Expenses Many Directors Forget to Claim
Running a limited company in the UK is a bit like spinning plates. Between managing clients, delivering your services, and actually trying to have a life outside of work, it’s easy to let the "small stuff" slide. But when it comes to your business expenses, that small stuff adds up to a very large tax bill if you aren’t careful.
As a director, you want to ensure your company is as tax-efficient as possible. Every pound you spend on a legitimate business expense is a pound that isn't subject to Corporation Tax. However, many directors we speak to are leaving money on the table simply because they didn't realize certain costs were claimable.
At Harrison’s Accountancy, we act as your own CFO, helping you navigate the complexities of HMRC rules so you can focus on growth. Whether you’re a consultant in Biggleswade or a media professional in London, having a limited company accountant who knows the "hidden" claims can make a world of difference.
Here are 15 business expenses many directors forget to claim.
1. The Home Office Allowance
Are you claiming for the space you use at home?
If you spend a significant amount of time working from home, you shouldn’t be paying for the extra light and heat out of your own pocket. HMRC allows two main ways to claim this:
- The Flat Rate: As of 2026, you can claim a simple, no-questions-asked flat rate (currently £6 per week) to cover additional household costs. It’s easy to record and requires no receipts.
- Actual Costs: If your home office use is substantial, you can calculate a fair proportion of your actual utility bills (gas, electricity, water). You’ll need a consistent method to justify the split between personal and business use.
2. Trivial Benefits
Did you know you can give yourself a tax-free gift?
HMRC allows companies to provide "trivial benefits" to directors and employees. For directors of "close" companies (most small Ltd companies), you can claim up to £300 per tax year. The rules are specific: the benefit must cost £50 or less per instance, it cannot be cash or a cash voucher, and it cannot be a reward for work performance. Think of it as a birthday treat or a small "thank you" to yourself that the company pays for, tax-free.
3. Annual Staff Social Events
Is your company paying for the Christmas party?
You are allowed to claim up to £150 (including VAT) per person, per year for annual social events. This isn't just for the Christmas bash; it could be a summer BBQ or a series of smaller events, provided the total doesn't exceed £150 per head. Best of all, if you have a spouse or partner who is also an employee or director, they get their own £150 allowance too!
4. Professional Subscriptions
Are you still paying for your industry memberships personally?
If you belong to a professional body that is relevant to your business, the company should be paying for it. HMRC maintains "List 3," which includes approved professional organisations. From the ACCA to the Royal Society of Arts, if it's on the list and helps you do your job, it's a valid business expense.
5. Eye Tests and VDU Glasses
Do you spend all day staring at a screen?
If your role requires you to use a "Visual Display Unit" (VDU) for a significant part of your day, your company can pay for your eye test. If the test shows that you need glasses specifically and only for screen work, the company can also pay for the glasses. It might not be a huge saving, but every little bit helps keep your business expenses in check.
6. Training and Personal Development
Are you keeping your skills sharp?
Training is a fantastic way to reduce your tax bill while growing your business. As long as the training is designed to update or improve the skills you already use in your business, it is generally tax-deductible. This includes courses, seminars, and even some travel costs associated with the training. Note: training for a completely new career path usually doesn't qualify, so check with your accountant first.
7. Travel to Temporary Workplaces
Do you visit clients or sites away from your usual office?
The "24-month rule" is your friend here. If you are required to work at a client’s site or a temporary location for less than 24 months, the travel costs are usually claimable. This includes train fares, parking, and even the cost of the coffee you bought at the station.
8. Mileage Allowance
Are you using the 2026 rates for your business trips?
If you use your personal vehicle for business travel, you can claim mileage. For the 2026/27 tax year, the approved rates have seen a welcome update. You can claim 55p per mile for the first 10,000 miles and 25p thereafter. Don't forget you can also claim an extra 5p per mile for every fellow employee or director who travels with you on the same business journey!
9. Subsistence (Meals on the Road)
Did you have to eat while traveling for work?
When you are traveling for business or working at a temporary location, the cost of your meals and drinks (subsistence) is often claimable. This doesn't mean a fancy five-course dinner every night, but "reasonable" costs for food and drink while you’re away from your normal place of work are perfectly acceptable.
10. Pension Contributions
Is your company funding your retirement?
One of the most tax-efficient ways to take money out of your company is through employer pension contributions. Unlike a salary, these contributions are not subject to National Insurance, and they are typically an allowable expense for Corporation Tax purposes. It’s a double win for your future and your current tax bill.
11. Phone and Broadband
Is your phone contract in your company name?
If your mobile phone contract is in your company’s name and used for business, the entire cost is deductible, even if there is some personal use. If the contract is in your personal name, you can only claim the business-use portion, which can be a headache to calculate. Moving the contract to the company is often a smart move.
12. Books and Technical Manuals
Do you buy books to stay ahead of the game?
Whether it's a technical manual, a subscription to an industry magazine, or a book on business leadership, if it’s for the benefit of your trade, it’s a claimable expense. Many directors pay for these via their personal Amazon accounts and forget to put them through the business.
13. Pre-incorporation Expenses
Did you spend money before you even started the company?
If you bought equipment, stock, or services specifically for the business up to seven years before you officially incorporated, you might be able to claim those costs back. As long as the expense would have been allowable if the company had been active, you can treat it as if it were incurred on the day the company started.
14. Protective Clothing or Uniform
Do you need specific gear for your work?
While you can’t claim for a nice suit (even if you only wear it for work), you can claim for protective clothing like steel-toed boots, high-vis jackets, or a uniform that clearly displays your company logo.
15. Bad Debts
Have you given up on an unpaid invoice?
If a client hasn't paid and you've exhausted all reasonable ways to collect the money, you can "write off" that bad debt. This reduces your taxable profit, meaning you aren't paying tax on money you never actually received.
How to Stay on Top of Your Expenses
Tracking all of this manually is a recipe for a headache. This is why we are Xero Cloud Experts. Using tools like Xero allows you to snap photos of receipts on the go, ensuring you never miss a claim again.
Managing your limited company shouldn't be a source of anxiety. With a proactive limited company accountant by your side, you can rest easy knowing that every legitimate expense is being claimed, and your tax bill is as lean as it can be.
Want to make sure you’re claiming everything you’re entitled to? Book a call with the Harrison’s team today and let’s take a look at your accounts together.
No Comments