Darren Fell, the managing director of Crunch Accounting, is a well-known figure in the UK small business community. With years of experience in the field, he has been providing valuable advice and ideas to small businesses and SMEs in the UK through his platform, Small Business UK. In this article, we will be discussing one of the most common concerns of small business owners – what expenses can be claimed through their business.
As a small business owner, it is crucial to understand the expenses that can be claimed through your business. These expenses are an essential part of your business operations and can have a significant impact on your overall profitability. However, navigating through the complex world of expenses and tax deductions can be daunting, especially for those who are new to the world of entrepreneurship. That’s where Darren Fell comes in – to simplify the process and help small business owners make the most of their expenses.
First and foremost, it is essential to understand that not all expenses can be claimed through your business. The expenses that can be claimed are the ones that are incurred solely for business purposes. These expenses are known as ‘allowable expenses’ and can be deducted from your business profits, which, in turn, can reduce your tax bill. However, it is crucial to keep in mind that the expenses must be ‘wholly and exclusively’ for business purposes and must be supported by proper documentation and receipts.
So, what are the expenses that can be claimed through your business? Let’s take a look at some of the most common ones.
1. Office expenses: This category includes expenses for items such as stationery, postage, and printing. These expenses are essential for the day-to-day running of your business and can be claimed as allowable expenses.
2. Travel expenses: If you are required to travel for business purposes, you can claim the cost of your travel as an allowable expense. This includes expenses for fuel, public transport, and accommodation. However, it is essential to note that only business-related travel can be claimed, and personal trips cannot be included.
3. Marketing and advertising expenses: As a small business owner, it is crucial to promote your products or services to attract customers. The costs incurred for marketing and advertising, such as website development, social media advertising, and business cards, can be claimed as allowable expenses.
4. Equipment and furniture: Any equipment or furniture that is used solely for business purposes can be claimed as an allowable expense. This includes items such as computers, printers, and office furniture.
5. Training and education: As a small business owner, it is essential to continuously improve your skills and knowledge to stay ahead in the competitive market. The costs incurred for training and education related to your business can be claimed as allowable expenses.
6. Insurance: Business insurance is a necessary expense for any small business owner. The costs for insuring your business premises, equipment, and employees can be claimed as allowable expenses.
7. Subscriptions and memberships: If you are a member of a professional body or have subscriptions to industry-specific magazines or journals, the costs can be claimed as allowable expenses.
8. Bank and credit card charges: The fees and charges incurred for business banking and credit card transactions can be claimed as allowable expenses.
9. Rent and utilities: If you rent a business premises, the rental costs and utilities, such as electricity and water, can be claimed as allowable expenses.
10. Salaries and wages: If you have employees, their salaries and wages can be claimed as allowable expenses. However, it is essential to keep in mind that these expenses must be reasonable and in line with industry standards.
In conclusion, as a small business owner, it is crucial to understand the expenses that can be claimed through your business. By claiming these allowable expenses, you can reduce your tax bill and improve your business’s profitability. However, it is essential to keep detailed records and have proper documentation to support your claims. With the help of experts like Darren Fell and his platform, Small Business UK, small business owners can navigate through the complex world of expenses and make the most of their business deductions. So, keep these expenses in mind and make the most of your business’s potential.