Common expenses questions answered
At our last Lunchtime Live event, our Chief Accountant Emily Coltman answered your questions about claiming tax relief on small business expenses in the UK. If you missed the live Q&A, just watch the video below to find out about claiming expenses for everything from travel to insurance. To jump the video to a specific question and answer, just select the questions below.
Food and drink
Travel and mileage
I own a Ltd Company and have been claiming mileage, train and parking for years. Recently a colleague said I couldn’t, as my place of work is not temporary. I've checked HMRC website and it says any contract less than two years is classed as temporary. Can you please clarify?
My primary mode of transport to and from clients is bicycle. I claim travel expenses at the rate of 20p per mile. I have recently purchased a new bike for work purposes. Can I declare this purchase as a company expense?
I'm the Director of a Ltd company living and working in London. When I visit a client I normally travel by tube. The journeys are charged to my Oyster card on a PAYG basis. How do I calculate how much I can claim and what proof would I need?
Business use of home
Expenses in foreign currencies
Computer equipment and software
If buying or renting software which has 50% business and 50% personal use, is it worth claiming it as an asset or is it classed differently? Much of this software is subscription based, how do our expenses fit in with this payment method?
As a sole trader, I’ve heard that Income Protection Insurance is tax deductible. Should this be put into your books in FreeAgent as an expense - or is it a separate field on your tax return and shouldn’t be in as an expense?