Your business will naturally incur running costs. These can be deducted from profits provided they are allowable business expenses. This does not include money taken out of the business to pay for personal expenses.
You can claim the majority of costs that are directly related to your business. For example, you may incur the following:
- Travel costs
- Car running costs
- Accountancy costs
- Legal costs relating to your business
- Advertising or marketing costs
- Phone & Internet costs
- Postage & Stationery
- Bank Charges
Remember if your expenses are only partly related to your business you will need to allocate the amount you claim for.
For example, if your monthly mobile phone bill is £50 but you only use your phone 50% of the time for business use, you can only claim for £25 as an expense.