A report released today is suggesting that a large number of business expenses are not being claimed by employees. Reasons for this vary but the most common reason seems to be losing receipts.
If you are a small business owner you should be actively encouraging your employees to make these expenses claims. By the same token, you should be making expenses claims on your tax return. The HMRC considers costs incurred for the purpose of generating business profits as legitimate business expenses so make sure you are claiming for the following if applicable:
- Replacement and repair of fixtures, fittings and furniture
- Utility bills
- Fuel used by company cars
- Offices supplies/stationary
- Meals consumed during business hours for business purposes
- Bills for phone and internet
Want to know more? Check out this excellent video.
If you are unsure about any claims then you can check them over with your employer, the tax authorities or a small business accountant.