DIY bookkeeping
11 June, 2025

Understanding What Your Company Can Claim

Running a limited company means the business is a separate legal entity from you as the director. That brings both opportunity and responsibility when it comes to claiming costs.
At ValueAdd, we see companies either miss out or claim incorrectly — either way the tax bill suffers. This guide gives you a practical overview of what limited companies can (and cannot) claim.

What Makes an Expense Claimable

To be deductible for Corporation Tax:

  • The cost must be incurred wholly and exclusively for the company’s trade.
  • You must be able to justify that the cost is for business – not personal benefit.
  • If you as a director incur expenses personally, the company may reimburse you (documentation and proper accounting are still required).

Typical Allowable Costs for Limited Companies

Office, equipment & subscriptions: Business computers, software licences, hosting (if paid for by the company or reimbursed properly).

Professional fees and memberships: Accountants, legal advice, membership of recognised bodies are typically allowable.

Business travel and subsistence: Travel for work purposes may be claimed; ordinary commuting will not.

Home-working costs (director’s home): If you work at home for the company, apportion running costs carefully. Limited companies cannot always rely on simplified flat-rate methods.

Staff costs, rent & utilities: If you have premises, rent and utilities are company costs. If you work from home, only the business portion is allowable.

Training and professional development: If it updates existing skills relevant to the business, it may be allowable. New skill-sets might not qualify.

What to Watch & Double-Check

  • Keep full records of reimbursement to directors.
  • Ensure costs paid personally by a director are formally reimbursed or treated correctly in accounts.
  • Check the latest allowances and thresholds (for example, for travel rates or home-office usage) for the tax year.
  • Be very cautious about mixed use (business and personal). HMRC expects clear apportionment or they may disallow the cost.
  • Entertainment of clients remains heavily restricted The rules differ when the cost benefits staff or directors vs external parties.

Final Thought

If you’re unsure whether a cost should sit in your company’s accounts, it’s wise to review it now rather than risk a later tax adjustment. Our team at ValueAdd can help you review expense claims for your company, avoid pitfalls and ensure your bookkeeping is robust.
Book a 30-minute discovery call with us and let’s get clarity.