Published on August 28th, 2014 | by admin
Do You Know What Expenses Can Be Claimed As An SME?
Keeping costs to a minimum will be a key objective that any small business owner will be keen to achieve.
Whilst claiming expenses on some day to day costs inevitably incurred by a business are relatively familiar to business owners, there are certainly areas where it is likely additional savings can be made.
In the former category is the issue of what can be claimed when using a car for business purposes. A claim of 45p a mile for the first 10,000 miles travelled for business purposes and then 25p for each one after that is widely noted already.
However, additional expenses often associated with running a business which may be less familiar in terms of what can be claimed back include purchases made for day to day office supplies for instance. Essential items that may fall under this category would include paper, notebooks and business books as well as inks and toners.
The good news is that higher value items of office equipment can also be claimed for by purchasing them off yourself as the business owner through the company thus making them a company asset meaning they can be deemed as a claimable expense.
Albeit with some limitations, small business owners working from home can make legitimate savings via HMRC. Entrepreneurs, dubbed ‘5 to-9ers’ can also claim on rent, mortgage and utility bill costs. However the amount of money claimed on rent, for example, should be proportional to the office space taken up in the home environment used for work purposes, as opposed to the full amount.
Utility bills work in the same way in terms of what can be claimed so it’s vital to keep accurate records that demonstrate, for example which internet and phone charges are work related and which are not.
With all these expenses that can be claimed via HMRC, what certainly is imperative is to be able to provide proof of all associated expenditure in the form of receipts for submission.