It’s a subject that causes confusion among many entrepreneurs with a small or medium-sized enterprise: How do I make a business expenses claim?
The short answer is yes! Here at Yorkshire Accountancy, we are happy to help since the claiming of business expenses is always seen as being a tricky area from clients and potential clients but the process is itself is quite simple.
The main issue is that you can only claim expenses to which you are entitled to or run the risk of falling foul of HM Revenue and Custom’s rules.
The best way of avoiding this, and to claim everything you are entitled to, is to engage the services of an accountant for their accounting and tax services experience and they will ensure that your business accounts are as good as they can be.
Yorkshire Accountancy urge all of their clients to keep accurate records of business expenses claimed and, if possible, to have some kind of note to illustrate what the expense relates to.
For instance, using your car for business purposes means you should claim mileage at 45p per mile. That’s just for the first 10,000 miles, with mileage after this figure being claimed at 25p per mile.
You will need to record the length and date of the journey and the purpose of the business trip. You cannot claim for commuting mileage to the business premises.
It will come as no surprise to learn that the cost of travel in the course of business is one of the biggest expenditures for a firm which leads me onto the question of entertaining.
The question of business entertainment and gifts is one that causes most confusion since businesses believe they can spend money on fancy restaurants and the like any time they wish. This is not the case. You will need to consult with a small business accountant to determine what can, and cannot, be claimed because this will be relevant for your business.
The other interesting area which causes surprise is that for training expenses. If the training is for a new skill, then it is not tax deductible. However, if the training is to develop skills or keep your skillset up-to-date then it is tax-deductible.
Every business owner wants to make a profit and only pay the tax they are legally required to pay and the correct claiming of expenses will ensure that you do not overpay tax liabilities.
Some entrepreneurs forget that they can claim for using their own home for business, a more obvious business expense claim when you don’t actually have an office premises to work from. You can claim a portion of your rent/mortgage and household bills.
A small business accountant will use their accounting and tax services knowledge to help you avoid a tricky situation should you come to sell your home since there are tax issues if you are claiming for one room which is dedicated to your business.
You can also employ a family member within the business which is a particularly good way of using their tax allowance.
At Yorkshire Accountancy we like to stress that record keeping should be kept up to date and paperwork should be submitted on time to HMRC.
If you would like to know more about claiming business expenses, or have a small business accountant who is cost-effective and efficient, then contact Yorkshire Accountancy today for more information on what we can do for you.