What can I claim as a business expense?
Many people ask me the above question so I thought it would be helpful if I wrote a blog on the subject…
It can very much depend on the type of business and the expenditure itself, however, the underlying theme is the same.
Three important questions to ask:
Has this expenditure contributed to my business in any way?
Have I received any income directly from this expense?
Would I have paid for this, if I had NOT been running a business e.g. phone, internet, council tax, rent?
If the expense has contributed to your business then you can claim either the full amount or a proportion of it. To determine the percentage that can be claimed, ask yourself honestly what proportion of the service/product you are paying for is used in your business, and how much is used personally.
Things that many people forget about:
Subsistence (see next week’s blog for more on this though!)
Percentage of home premise expense (gas, electricity)*