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.
- 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.