Use of home as office expenses
HMRC allow employees (including Directors) to claim £4 a week when working at home - this equates to £208.00 per year. To claim this amount as an expense you must undertake important and considerable duties related to the main trade of your business. For example, you won’t be able to make a claim if you just sorted business post at home.
Year End Requirement: you need to confirm that you wish to claim use of home as office expenses in your annual accounts. To do this you will need to confirm you undertake substantive duties relating to your business at home.
If you spend a significant amount of time working in a designated area of your house for business purposes you can possibly rent an area of your home to your company. This is an extremely complex area and you should read our help centre article before deciding if this applies to your business. You should then discuss your proposals with one of our accountants. You will need to set up a rental agreement between yourself and your company before you can include rental expenses of this type in your accounts. There are also implications for your personal tax situation which you should consider before proceeding with a rental agreement.
Year End Requirement: we will need to see the rental agreement between you and your company and how the rental amount has been calculated. Therefore, make sure you have a rental agreement in place and upload your workings supporting the expense calculation / email us at the end of your accounting year.
and/or landline) when it’s unlimited or not itemised.
Keep it simple and speak to your existing mobile provider - you may be surprised to find out that their business contracts are more reasonable than first thought. Claiming £40.00 a month on your business phone takes almost £100.00 off your overall Corporation Tax bill. If you buy the
handset outright, remember to record it in Fixed Asset - Equipment Cost.
Year End Requirement: We must have confirmation that the business phone is used 100% for the purposes of your business - so attach your bill to the expense on your Crunch account, showing the contract in your company's name.
Travel & Subsistence
If you’ve used your personal car or van to get to a temporary place of work and paid out for the petrol personally, you’re entitled to get this back from your company in the form of 45p per mile travelled for the first 10,000 miles in a given tax year.
The great thing about this is that not only does the business expense reduce your overall Corporation Tax bill, it also means you can reimburse yourself the amount claimed.
Year End Requirement: we must have your mileage calculations so make sure you either use our excellent (and free) mobile application Tripcatcher or use our mileage spreadsheet - if you use the spreadsheet, simply send it to us when you’ve finished your company year. For any vehicles owned by the company, please contact us so we can advise.
This is only allowable if:
- It's going to enhance existing knowledge and skills; and
- It's required for business purposes specific to your company's trading activity.
Year End Requirement: if you’ve claimed for any staff training costs, we’ll review these so please make sure that you attach a receipt supporting the expense and let us know how it relates to your company.
You may continue to use the asset year on year or if the asset is no longer used by your business or obsolete you may decide to dispose of it. Whether you continue to use a fixed asset, sell it or even scrap it, we need to know in order to ensure it is correctly accounted for each year
Year End Requirement: we need to know whether you still use the item or whether you’ve sold it. If you have sold the item, we need to know how much the item was sold for and on what date. Similarly if you scrap the asset, we need to know the date this happened, In the attachment section below, we have a handy Fixed Asset Register that you could use and send across to us either at the end of your year or as and when the item is sold.