Understanding what expenses you can claim is one of the most effective ways to reduce your corporation tax bill.
If you run a limited company in Manchester or Lancashire, claiming allowable expenses correctly can make a significant difference to your bottom line.
What are allowable expenses?
Allowable expenses are costs that are “wholly and exclusively” for business purposes. Get the distinction right and HMRC has no issue; blur the line and you risk an enquiry.
Common expenses you can claim
- Office costs (rent, utilities, internet)
- Travel expenses (fuel, train tickets, parking)
- Professional fees (accountants, legal fees)
- Salaries and staff costs
- Equipment and software
Expenses to be careful with
Some expenses have restrictions, including:
- Entertainment — generally not tax-deductible
- Personal use items — only the business portion can be claimed
- Mixed-use costs — need a clear apportionment
Why it matters
Incorrect expense claims can lead to:
- Overpaying tax
- HMRC enquiries
- Interest and penalties
How we help
At ON Advisory Group, we support businesses across Lancashire and Manchester to:
- Identify all allowable expenses
- Ensure compliance with HMRC
- Optimise tax efficiency
If you're unsure what you can claim, speak to our team today.