Why are expenses important?

It’s likely that you’ll incur expenses whilst running your limited company – for example travel and hotel stays, IT equipment, office furniture and stationery, mobile phones, etc. HMRC allows you to claim these expenses from your company, and you do this before paying tax – therefore reducing your overall tax bill.

In order to claim an expense it needs to be wholly and exclusively for the purposes of your business – meaning you can’t claim for personal expenses.