The rules for allowable business expenses are generally similar for limited and unlimited companies, with some subtle exceptions. Where there are differences  – these are identified in the guide below.

Bank Charges and Loan Interest

All business related bank fees and charges can be claimed:

  • bank charges
  • arrangement fees
  • interest charged on overdrafts or borrowings
  • factoring charges

If you have to reimburse an employee for bank charges they incurred because you failed to pay their wages or expenses on time, then these are also allowable.

Business gifts

  • Corporate gifts and promotional materials are generally allowable, so long at the value of the the gift is under £50 and has your corporate branding.
  • Mouse mats, cups, stationery, umbrella’s and pens for example, are all common business gifts.
  • A gift to a client of food or drink would generally come under business entertaining and be disallowed for tax purposes.

We hope you find this series on expenses helpful. Please take a moment to check out our other articles.



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