Some of the costs of running your business are classed by HMRC as allowable expenses. These expenses are taken off your business income before tax is calculated.

NOTE: Claiming allowable expenses reduce the amount of tax you have to pay. Lovely.

Generally, things bought for the sole purpose of earning business profit are allowable.  

NOTE: Personal items aren’t allowable, sorry.

Claiming only business percentage

Some expenses will be for business and personal use. If that’s the case, work out how much it’s used for business and claim for that percentage of the cost. In this scenario, HMRC will expect any claim to be “reasonable”, so bear that in mind when making a claim.

You can ‘Hold For Help’ for more detail on specific expenses in the Adding an Expense screen. Here’s the HMRC summary of what’s allowable and what’s not:

Here, check out HMRC's 'allowable expenses' list

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