What Can I Legitimately Put Through My Business?

<p>This is one of those questions that sounds simple until someone says, "Well, technically I did use it for work," and we suddenly find ourselves discussing whether a family meal, a new wardrobe and a weekend in Cornwall count as business expenses.</p><p>They do not.</p><p>But let's talk about what does.</p><h2>The rule HMRC actually cares about</h2><p>The test for most business expenses is whether the cost was incurred <strong>wholly and exclusively</strong> for the purposes of the business.</p><p>That phrase does a lot of work.</p><p>It means the expense has to be genuinely for business, not partly for business and partly because you fancied it.</p><p>A laptop you use for work? Yes.</p><p>A laptop you use for work and also for watching Netflix? More complicated.</p><p>A meal with a client where you discussed a project? Possibly.</p><p>A meal with your family where you briefly mentioned work? No.</p><h2>Some common ones that do qualify</h2><p>Office costs — rent, utilities, stationery, postage.</p><p>Equipment and tools you genuinely use for work.</p><p>Professional subscriptions and memberships relevant to your trade.</p><p>Travel costs for genuine business journeys (not your normal commute).</p><p>Staff costs, including wages and employer pension contributions.</p><p>Professional fees — accountants, solicitors, business advisers.</p><p>Marketing and advertising costs.</p><p>Training that is directly relevant to your current work.</p><h2>Some common ones that do not</h2><p>Your normal commute to a regular place of work.</p><p>Clothing that could be worn outside of work (even if you only wear it for work).</p><p>Personal meals and entertainment.</p><p>Anything with a significant personal element, even if there is some business connection.</p><h2>The grey areas</h2><p>This is where it gets interesting.</p><p>Working from home costs can be claimed, but only the business proportion.</p><p>A phone used for both personal and business calls needs to be split.</p><p>A client lunch might be allowable, but entertaining clients is often not deductible for Corporation Tax purposes even if it is a genuine business cost.</p><p>The rules are not always intuitive, which is why it is worth asking rather than guessing.</p><h2>The rule is not that every expense must be dull</h2><p>It is simply that there should be a genuine business reason behind it.</p><p>If you are unsure, ask us first. We would much rather have a five-minute conversation now than a very creative conversation with HMRC later.</p>