The majority of expenses incurred by your company will be tax deductible, therefore reducing your tax bill. However, there may be some expenses that have limitations or cannot be claimed. Below we explain the different statuses

Tax deductible

A fully allowable and tax deductible expense. These can usually be identified if the expense is "wholly and exclusive for business use". They will be deducted from your income, therefore reducing the tax payable at the end of the year.

You can view a full list of common expenses here.

Tax limitations

These expenses may be claimed for through the business but it depends on a number of factors. For example, training can be claimed for through the company IF it's to enhance an existing, business-related skill. It cannot be claimed if it's for a new skill.

Not tax allowable

These expenses are not allowed and should not be claimed for through the business. For example, you cannot put the cost of a self assessment tax bill through your company.

Non-tax allowable expenses will be transferred to your director's loan account in the software and will need to be repaid to the business.

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