What Expenses Can I Claim Through My Limited Company?

One of the most common questions we get asked is:

"Can I put that through the company?"

And honestly... the answer is usually:

👉 Possibly - if it is genuinely for business use.

The problem is, a lot of directors either:

·       Don't claim enough

·       Or claim things incorrectly and create problems later

So let's keep it simple.

Here are some of the most common expenses you can claim through your limited company 👇

💻 Laptops, Computers & Equipment

If you use equipment for your business, your company can usually buy it.

This includes things like:

·       Laptops

·       Monitors

·       Keyboards

·       Printers

·       Office desks

·       Office chairs

👉 Especially relevant for designers, IT consultants, video editors and freelancers.

📱 Phones & Internet

Your company can usually pay for mobile phones, broadband and internet costs.

💡 One useful tip:

The mobile phone contract needs to be in the company name and aid through the company bank account  

🎨 Software & Subscriptions

This is a big one for creative and digital businesses.

Common allowable subscriptions include:

·       Adobe Creative Cloud

·       Microsoft 365

·       Canva

·       Xero / QuickBooks

·       Dropbox

·       Google Workspace

·       Website hosting and business tools

👉 If you use it for the business, it is usually allowable.

🏠 Working From Home Costs

If you work from home, you may be able to claim part of your household costs.

This can include things like electricity, heating, broadband and office use.

A lot of freelancers and consultants miss this completely.

🚗 Travel Expenses

Business-related travel can usually be claimed.

This can include:

·       Train tickets

·       Hotels

·       Parking

·       Mileage

·       flights

👉 there are restrictions of you travel to the same place of work for 24 months or more

☕ Meals & Coffee Meetings

If you’re travelling for business to client premises, food and drink can sometimes be allowable.

👉 But your everyday lunch at your home office isn’t claimable unfortunately 😅

🎥 Cameras, Creative Equipment & Tech

This is especially useful for creatives, photographers, film makers and digital professionals.

Things often claimed include:

·       Cameras

·       Microphones

·       Lighting equipment

·       iPads

·       Editing equipment

·       External hard drives

👉 If it is genuinely used for the business, there is usually no issue.

📚 Training & Courses

Training can be allowable, but the rules depend on what the training is for.

Generally:

👉 Training to improve existing business skills = usually allowable

👉 Training for a completely new trade = usually not allowable

🚘 Electric Cars Through The Company

This has become more popular recently and is now more tax efficient

Fully electric cars currently have very low Benefit in Kind tax, which can make them surprisingly tax efficient through a limited company.

💡 Pension Contributions (One of the Best)

This is probably one of the most tax-efficient expenses available.

When your company contributes into your pension:

👉 It reduces Corporation Tax

👉 No Income Tax

👉 No National Insurance

👉 No dividend tax

Not exciting... but incredibly effective.

🎁 Lesser-Known Free Perks

There are also a few smaller perks that many directors forget about.

They are not huge on their own, but they can still be useful - especially when used properly.

Annual Company Event

Your company can usually pay for an annual event, such as a Christmas party or summer meal, without creating a tax charge if it meets the rules.

The key points are:

👉 Up to £150 per head

👉 This can include you and your partner if they attend as a guest

👉 You need to keep receipts

👉 If the cost goes over the limit, the exemption is lost

👉 VAT can be tricky, so do not assume it is reclaimable - especially for guests or directors only

Trivial Benefits

This is a simple one many directors miss.

A company can provide small benefits costing no more than £50 without tax or reporting to HMRC, as long as the rules are met.

For directors of close companies, tax-free trivial benefits are capped at £300 per tax year.

The benefit cannot be cash, but it could be a gift card as long as it cannot be exchanged for cash.

👉 Small, simple and tax-free when done correctly.

Medical Benefits

Private medical insurance is usually a taxable benefit, but some health-related benefits can be provided tax-free.

For example, a company can normally provide:

👉 One annual health screening assessment

👉 One annual medical check-up

It may also be possible for the company to pay for recommended medical treatment to help a director or employee return to work after an injury or period of ill health, without triggering a Benefit in Kind charge.

This exemption is capped at £500 per year.

⚠️ The Important Bit

Just because something can be claimed does not automatically mean it should be.

The key HMRC rule is usually:

👉 Wholly and exclusively for business use

That is the bit HMRC cares about most.

🚫 Common Mistakes We See

A few things that often cause issues:

·       Claiming personal purchases

·       Mixing business and personal spending

·       Buying things through the company that mainly benefit the director personally

·       No receipts or records

👉 Keeping things organised makes life much easier later on.

Final Thoughts

Most directors are either:

👉 Missing legitimate expenses

👉 Or unsure what they can claim safely

And honestly, that is normal.

The rules are not always explained very clearly.

But getting your expenses right can make a big difference to:

·       Your tax bill

·       Your profits

·       And how much money you keep

Not Sure What You Can Claim?

If you are ever unsure whether something is allowable, it is always better to check first.

At The Tax Return Expert, we help freelancers, creatives, consultants and small businesses keep things simple - without the jargon.

👉 Feel free to get in touch for a quick chat.