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Expenses

Claiming the right expenses isn't about being clever with HMRC — it's about not paying tax on money you've actually spent running your business. These guides cover what counts as an allowable expense, the specific rules for mileage, home working and benefits in kind, and how to record everything so it stands up to scrutiny.

Jump to 6 guides 6 key facts Annual cycle Reviewed by qualified accountants

Guides

Read our Expenses guides

Plain-English walkthroughs of the most common questions clients ask.

Key facts

The headline figures

45p / 25p

Business mileage (car)

First 10,000 miles / above 10,000 miles

20p

Business mileage (bike)

Per mile, no upper limit

£6/wk

Working from home (sole trader)

Simplified expense — or claim a proportion of actual costs

£6/wk

Working from home (Ltd)

Reimbursable from company without P11D

£50 max

Trivial benefits

Per gift, plus £300/yr cap for directors

£5-£25

Subsistence (per HMRC scale)

Tax-free meal allowances on qualifying business travel

Annual cycle

Key dates and deadlines

The events you can't afford to miss in a typical year.

  1. As they happen

    Record the expense

    Photo of receipt, log in accounting software (FreeAgent, Xero etc.), categorise correctly.

  2. Same day, ideally

    Categorise

    Right category = right tax treatment. Mileage ≠ fuel ≠ travel. Wrong category can mean missed claims or unexpected benefits-in-kind.

  3. Tax year end (5 April / company year end)

    Reconcile

    Make sure every expense has a receipt and a valid business purpose. Anything unsupported gets disallowed.

  4. 6 July (companies only)

    P11D deadline

    Report any benefits-in-kind provided to directors / employees during the previous tax year.

Useful resources

Official tools and references

Quick answers

Expenses FAQs

What's the rule for an expense to be allowable?
It must be 'wholly and exclusively' for business purposes. If something has both business and personal use (like a phone or laptop), you can usually claim the business proportion. Pure dual-purpose expenses (a suit for work but also wearable socially) are generally not allowed.
Can I claim for working from home?
Sole traders can use HMRC's simplified flat rate (£6/wk, or scaled by hours worked from home) or claim a proportion of actual household costs. Limited company directors can reimburse themselves £6/wk from the company without a P11D — or, for higher claims, prepare a formal use-of-home calculation.
What about meals when I'm working?
Generally no — eating is a personal cost. Exceptions: subsistence on qualifying business travel away from your normal base (per HMRC scale rates), occasional staff entertainment (limits apply), or a meal during a genuine business meeting with a client (sometimes — entertainment rules complicate this).
Can I put my mortgage / rent through the company?
Not directly — but you can claim a reasonable proportion of running costs (lighting, heating, council tax, broadband) if you genuinely work from home. Putting rent or mortgage interest through has stamp duty and capital gains tax implications that almost always outweigh the saving.
What's a benefit-in-kind?
A non-cash perk an employer provides to an employee or director — private healthcare, a company car for personal use, a season ticket loan over £10k, etc. It gets reported on a P11D each year, and either the employee or the company (if you payroll the benefit) pays tax on it.

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