One of the major benefits of running your own company is that you can claim expenses. This can save you a lot of money when the time comes for you to pay your tax bill. That being said, so many people happen to get the wrong idea when it comes to their expenses, they get charged extra as a result. If you don’t want this to happen to you, then there are some things you can do to make things easier on yourself. Have a look below to see what you can claim for, and how to save yourself money in the long run.
Claiming Food and Drink
You would be surprised at how many small companies think that you can claim for every meal that you have at work. This is not really the case. In terms of tax, you should only be claiming for meals that you eat that could be outside of your normal working pattern. If you are travelling to visit a client in a different city, then you can claim all of the expenses regarding this, but if you are just going to a sandwich shop so you can avoid making your lunch in the morning then you shouldn’t be really claiming this kind of expense.
Overdoing it with Motor Expenses
Businesses can easily file expenses for their travel costs, but if you happen to use the same car for your work journeys and your personal journeys, then you can only claim for the business percentile of this. If you look at things from a simplicity point of view, if you use your car 50% of the time for work-related duties then you can claim for 50% of the fuel and 50% of the insurance for that vehicle. If you claim for more than this, then you may find yourself in hot water should you have your accounts inspected by the relevant tax body.
Not Retaining Proof
The chances of you being inspected might be small, but that being said, it can happen at any time. If you want to safeguard your company, then it is imperative that you take the time to stick to the various rules and regulations that are out there. If you have bought a mobile card reader, then you may be able to get receipts from this, which you can keep for your own business purposes. If you are still logging all of your sales by hand, then you can easily find a mobile card reader online. In fact, mobile card readers are available here if you want to make a purchase.
Work-Related Expenses
If you are going out there and if you are meeting clients, then you are probably going to want to dress up. With this, you can only claim for clothing that is related to your work. You cannot claim for a new suit if you intend to wear it when you are away from the office. If you work in construction, then you can easily claim for hard hats and high-visibility jackets without concern as you won’t be wearing items like this elsewhere.
Love,
TDP x