Complete Guide to UK Limited Company Expenses 2025

Are you maximizing your limited company’s tax efficiency? Understanding which expenses are tax-deductible can significantly reduce your Corporation Tax bill. This comprehensive guide walks you through everything you need to know about claiming business expenses in 2025.

The Basic Rule for Claiming Expenses

HMRC keeps it simple. You can claim any cost that you use purely for business. This means:

• The expense must be for business only
• You need to keep receipts
• Personal costs don’t count

When you claim expenses:

• Your company pays less tax
• You save money
• Everything stays legal

What Can You Claim? Your Quick Guide

1. Office Costs

You can claim for:

• Rent for your office
• Bills like electricity and water
• Computers and printers
• Office furniture
• Paper and pens

Working from home? You can claim:

• £6 per week without receipts, or
• A share of your home bills based on your workspace

2. Travel Costs

HMRC lets you claim:

• Car travel at 45p per mile (first 10,000 miles)
• Car travel at 25p per mile after that
• Motorcycle trips at 24p per mile
• Bike rides at 20p per mile
• Train and bus fares
• Parking fees
• Hotel stays for business trips
• Food when you’re traveling for work

3. Professional Help

You can claim for:

• Your accountant’s fees
• Legal advice
• Business training courses
• Work certifications
• Business consultants

4. Marketing Your Business

Claim the cost of:

• Your website
• Online ads
• Printed adverts
• Business cards
• Social media marketing
• PR services

5. Staff Perks

You can treat your team:

Small Gifts (Trivial Benefits):

• Must cost £50 or less
• Can’t be cash
• Can’t be for work done
• Directors can get up to £300 worth per year

Team Events:

• Spend up to £150 per person
• Must invite everyone
• Can split between several events

Starting a New Company? Claim Your Setup Costs

You can claim expenses from before your company started:

• Up to 7 years for general costs
• Up to 4 years for VAT
• Must keep all receipts
• Items must still be in use

Note: You can’t claim the cost of setting up your company.

Modern Business Costs You Can Claim

Digital Tools

Claim for:

• Cloud storage
• Video call software
• Online security
• Work apps
• Data backup

Insurance

Protect your business and claim:

• Public liability cover
• Professional insurance
• Employee insurance
• Business equipment cover
• Life insurance through your company

What You Can’t Claim

Keep these costs separate:

• Regular clothes (unless they’re uniforms)
• Client entertainment
• Personal life insurance
• Fines
• Your own car (but you can claim mileage)

Keep Good Records

Make it easy for HMRC:

1. Save all receipts
2. Keep bank statements
3. Track your mileage
4. Store everything for 6 years
5. Use a digital system to stay organized

Make Life Easier: Top Tips

1. Get a separate business bank account
2. Use an expense tracking app
3. Check receipts monthly
4. Talk to an accountant regularly
5. Learn about tax changes

Need More Help?

Tax rules change often. While this guide gives you the basics, talk to an accountant about your specific situation. They’ll help you:

• Claim everything you can
• Stay within the rules
• Save the most money
• Keep good records
• Plan for the future

Updated: January 2025. This is a general guide. Always get professional advice for your situation.