UK Business Expenses Guide

Only if bought during business travel or client meetings - not your daily flat white.

No - HMRC considers this a personal benefit, not a business expense.

Yes - you can claim a reasonable proportion based on business use.

Yes - either a proportion of personal phone, or 100% of a dedicated business phone.

Yes - 100% deductible as a business asset if used wholly for business.

No - HMRC specifically disallows business entertainment expenses for tax purposes.

Yes - travel to client sites and business meetings is fully deductible.

Only if they're genuine uniforms or protective clothing - not regular office wear.

Yes - business software subscriptions are fully deductible.

Yes - you can claim a proportion of household costs or use the simplified £6/week rate.

Yes - accountancy fees for your business are fully deductible.

Yes if it updates existing skills - no if it's training for a new career.

Yes - all business-related insurance premiums are fully deductible.

Yes - at HMRC approved rates: 45p/mile for first 10,000 miles, 25p after.

Yes - coworking membership and hot desk fees are fully deductible business expenses.

Yes - books related to your business or professional development are deductible.

Yes for business trips - no for commuting or personal use.

Yes - domain registration and renewal fees are fully deductible.

Yes for business trips - no for commuting to your regular workplace.

Yes - up to £150 per head annually for staff events, but strict rules apply.

Yes - donations to registered charities are deductible from company profits.

Yes - you can claim a proportion based on business use if you work from home.

Only a proportion if you use part of your home exclusively for business - and only the interest, not capital repayments.

No - childcare is a personal expense. However, there are tax-efficient childcare voucher/account schemes.

Eye tests for DSE users are claimable. Basic corrective glasses for DSE use only are claimable. Regular prescription glasses are not.

No - dental treatment is a personal expense. Company-paid dental cover is a taxable benefit.

The company can pay for it (tax deductible for the company), but you'll pay tax on it as a Benefit in Kind.

Yes, but you'll pay Benefit in Kind tax. Electric cars have much lower BIK rates (2% in 2025/26).

Yes - electric company cars are highly tax-efficient with only 2% Benefit in Kind rate (2025/26).

Business fuel yes. Personal fuel in a company car creates an additional (expensive) fuel benefit.

Yes - via the Cycle to Work scheme, or as a tax-free loan if the bike is used mainly for business travel.

Yes - employer pension contributions are one of the most tax-efficient ways to extract money from your company.

Yes - office furniture for business use is fully deductible.

Yes - monitors for business use are fully deductible as equipment.

Yes - printers and consumables for business use are fully deductible.

Yes - stationery and office supplies for business use are fully deductible.

Yes - postage and shipping costs for business purposes are fully deductible.

Yes - all advertising and marketing costs including Google Ads are fully deductible.

Yes - social media advertising is fully deductible as a marketing expense.

Yes - LinkedIn Premium and Sales Navigator are deductible if used for business purposes.

Yes - website design, development, and maintenance costs are fully deductible.

Yes - web hosting and cloud services for business are fully deductible.

Yes - Microsoft 365 Business subscriptions are fully deductible.

Yes — ChatGPT Plus, Claude Pro, Cursor, Perplexity, Notion AI and other AI tools are fully deductible business expenses for UK limited companies when used for business purposes.

Yes for business legal matters - no for personal legal issues or capital transactions.

Application fees are deductible. The trademark itself may be a capital asset depending on value and circumstances.

Yes - but only when sold. Stock is counted as an asset until sold, then becomes cost of goods sold.

Yes - tools and equipment for your trade are fully deductible.

Event tickets and membership fees yes. Food/drink at networking events may be treated as entertainment (not deductible).

Yes - memberships relevant to your profession or business are deductible.

Amazon Business Prime is fully deductible. Personal Prime is only claimable for the business-use proportion.

Yes - professional photography for business purposes is fully deductible.

Yes - video content for marketing, training, or business purposes is fully deductible.

Yes - accommodation for business travel away from your normal workplace is fully deductible.

Yes - meals during business travel away from your normal workplace are deductible (subsistence).

Yes - vans have favourable tax treatment compared to cars. Fixed BIK of £3,960/year (2025/26) regardless of value.

Yes - business bank charges and fees are fully deductible.

Yes - payment processing fees for business transactions are deductible.

Yes - rent for business premises is fully deductible.

Yes - business rates on commercial premises are fully deductible.

Yes - cleaning costs for business premises are fully deductible.

Yes - security costs for protecting your business are fully deductible.

Yes - costs of recruiting staff including agency fees and advertising are deductible.

Trivial benefits up to £50 are tax-free. Larger gifts may be taxable benefits.