Best Accountants in Rochester

New post: What expenses can my limited company claim? Running a business inevitably incurs costs, whether that is everyday sundries, fuel for a business trip or larger investments in items like computers. A limited company is able to claim tax relief on business costs, but to stay on the right side of HMRC, it's important to understand exactly what does and does not qualify as a tax-deductible expense. A limited company can deduct certain business expenses from its taxable income to reduce the company's corporation tax liability. Allowable expenses are those “wholly and exclusively” incurred in the running of the business, such as bank fees, business travel and office supplies. It's essential to record and claim tax-deductible expenses accurately to reduce your company profits before tax. If not, you may be missing out on hundreds or even thousands of pounds in unclaimed tax relief each year. Conversely, if you incorrectly claim tax on items for personal use, you could be subject to penalties from HMRC.