If you’ve spent personal funds setting up your business, what scope is there to reclaim these costs from your limited company, once it has been incorporated or from you Sole Trader business?
Many small business owners, including contractors, may absorb a number of costs personally before their businesses are up and running. Many of these expenses will be incurred shortly before company formation. It may be that certain costs have to be paid for before your company bank acco
The main rule is “an allowable expense should be wholly, exclusively and necessarily incurred in the performance of your day to day business.” Any direct expense incurred running your business should be claimed, there are some expenses that you might think meet the criteria but are unfortunately not allowable, such as entertainment and professional attire. However, if you are operating as a limited company you can pay for these expenses through the business, but they will be
This advice is for Sole Traders not Limited Companies. This guide does not cover every type of business expense, just the ones that we are asked about most often. Home office costs These days a lot of self employed freelancers work from home so it is important to ensure a sufficient “Use of Home as Office” cost is put against your tax return. There are two options: 1 – Simplified HMRC rate This is a nice, easy and straightforward option but you might not save as much as you d