OASIS

ACCOUNTANTS

Expenses Guidelines

What expenses can I claim? is one of the most commonly asked questions by new
directors of limited companies.

Here at Oasis Accountants Limited we want to give you as much guidance and advice
as we can in regards to claiming expenses. We understand that there can be a range
of expenses that our clients wish to claim so we have compiled a short guide
providing examples of the types of expenses that could be claimed with the right
reason.

The information in this guide is intended to provide general information and is not an
exhaustive list of expenses that can be claimed or not claimed.

Travel

Mileage for privately owned vehicles:

o Cars - Claimed at 45p per mile for the first 10,000 miles in each tax year, then
25p per mile thereafter.
o Motor cycle - Claimed at 24p per mile.
o (Push) Bicycles - Claimed at 20p per mile.

Public transport:
o Buses, trains, tube, taxi, planes, ferries and trams (etc) can be claimed.

Please note that the 24 month rule applies to travel expenses. Please see HMRC
website for further details on the 24 month rule.

Mobile telephone

o One mobile telephone purchased in the company name is allowable per

employee. Your company name must be displayed on the mobile telephone bill
that is being claimed if you wish to claim the line rental along with the calls, SMS
and data that you use.
o If your mobile telephone bill does not display your companys name, you should
only claim the individual call costs that were related to your business.

OASIS ACCOUNTANTS LIMITED

Chartered Certified Accounts
Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA
T: 02031293216 | F: 02071832659 | M: 07944334262
E: Shankar@oasisaccountants.co.uk
 OASIS
ACCOUNTANTS

Internet / Broadband

o You can claim the full cost of your internet connection if the contract is in your
companys name and your private use is not significant.

o If the contract is in your personal name, a percentage of the bill based on the
actual business use is claimable.

Training

o Training should be paid from your business bank account and the receipt must
display your companys name.

o Training is only allowable when it is in relation to your current job, improving the
skills you possess and to assist you in your day to day work.

Home office

o You can claim a flat rate of 4 per week when carrying out the majority of your
working duties from your home.

Temporary accommodation

o If you have a business requirement to stay in temporary accommodation i.e.

Hotel or Bed and Breakfast, the cost of the accommodation on nights prior to
work can be claimed. While in temporary accommodation (only) you can also
claim for food and (non-alcoholic) drink.

o If youre renting a second property, or just a room (which isnt your main
residence and is not where your company is registered) to be near your
temporary place of work, the cost of the rental can be claimed. 5/7th of the costs
are normally claimed assuming that you work a 5 day week.

o You could also claim 5 per night for Personal Incidental Expenses (PIEs) when
in the UK or 10 per night when outside the UK which is in addition to the above.

OASIS ACCOUNTANTS LIMITED

Chartered Certified Accounts
Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA
T: 02031293216 | F: 02071832659 | M: 07944334262
E: Shankar@oasisaccountants.co.uk
 OASIS
ACCOUNTANTS

Hardware, software, Peripherals and Equipment

o Receipts for computer equipment should display your companys name.

Christmas / Annual Party

o A maximum of 150 can be claimed per employee, per year.

Pension contributions

o Personal pension contributions are allowable up to a maximum of 100% of your

salary per year.

o Company pension contributions into a personal pension are allowable up to a

possible maximum of 50,000 per year (2013/14). It is recommended that
further advice should be taken from an Independent Financial Advisor.

Accountancy Fees

We will automatically offset our accountancy fees against tax for you. You will see the
fee and tax saving on one remittance per month. Therefore, you do not need to
put in a separate expense claim for this.

OASIS ACCOUNTANTS LIMITED

Chartered Certified Accounts
Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA
T: 02031293216 | F: 02071832659 | M: 07944334262
E: Shankar@oasisaccountants.co.uk
 OASIS
ACCOUNTANTS

Childcare costs

o Costs up to certain limits are allowable and should be paid directly from your
business bank account to a registered childcare provider or nursery.

o Your company can only make a claim for child care costs if they are paid to a
registered childcare provider or nursery.

o In 2013/14, these are 55 per week for a basic rate taxpayer, 28 per week for
a higher rate taxpayer and 25 per week for a for additional rate earner. You
should pay any costs above these limits personally to avoid a benefit in kind
arising.

Technical Books

o Technical books used specifically for your business and work are tax deductible.
The books must be in relation to the work you provide through your company.

Company Charitable Donations

o Companies can receive tax relief on gifts of money to charities.

o For the relief to qualify the payment has to be made to a registered charity.

HMRC has published its charity list here:

http://www.hmrc.gov.uk/charities/charities-search.htm

o Gifts of money made to a charity by your company should be paid gross - before
tax is deducted. These donations are deductible from the total profits of your
business when calculating Corporation Tax and are recorded in the Corporation
Tax Return (CT600).

OASIS ACCOUNTANTS LIMITED

Chartered Certified Accounts

Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA

T: 02031293216 | F: 02071832659 | M: 07944334262
E: Shankar@oasisaccountants.co.uk
 OASIS
ACCOUNTANTS

Others

o Stationery
o Professional subscriptions (must be specified on HMRCs List 3)
o Professional Indemnity, liability and IR35 insurance
o Safety clothing (hard hat, steel toe cap boots etc)

Expenses that cannot be claimed

o Daily food expenses (except for evening meals when staying away for business)
o Alcohol
o Clothes (Suits, shirts, shoes etc)
o Entertaining
o Private health insurance
o Mortgage costs
o Scholarships
o PCG (Professional Contractors group) membership

Please be aware that Oasis Accountants Limited does not require you to send us your
receipts (or copies). However, you must keep all original expense receipts and
invoices at the registered address of your company for 7 years.

If you send receipts to Oasis Accountants Limited they will have to be returned, to
which we will not be held responsible for any receipts lost in the post.

VAT If you want to reclaim VAT from an expense, the receipt must be in your
companys name. VAT cannot be claimed back from expenses if your company is
registered on the Flat Rate Scheme (Horizon).

Please be advised that the content of this document should only to be used as a guide.
Information in this guide is intended to provide general information and is not an

OASIS ACCOUNTANTS LIMITED

Chartered Certified Accounts

Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA

T: 02031293216 | F: 02071832659 | M: 07944334262
E: Shankar@oasisaccountants.co.uk
 OASIS
ACCOUNTANTS

exhaustive list of expenses that can be claimed or not claimed. All of the business
expenses that you claim against tax must be Wholly, exclusively and necessarily in
relation to your business. If you claim back expenses that are questioned by HMRC
Oasis Accountants Limited will not hold any responsibility. You are solely responsible
to ensure the expenses that you claim are legitimate business expenses.

Expenses related to a temporary work site must adhere to the 24 month rule. In short
as soon as you know youll work on one work site for 24 months or greater you cannot
claim back expenses relating to that work site. For further information you can visit
www.HMRC.gov.uk.

If you would like our opinion on whether you can claim for a certain expense, please
contact us first on 02031293216.

Do I need to keep receipts?

Yes, you are required to keep your receipts at the registered address of your limited
company for up to 7 years.

It is not a requirement to send Oasis Accountants Limited your receipts. To reduce

the administration for you we will accept expense claims on the template we provide
as long as everything has been filled out correctly. We will process your expenses in
the knowledge that you have the receipts.

Please note about expenses

The expenses guidelines is a guide for limited companies operating outside IR35, if you
operate inside IR35 there is an alternative guide, please contact our payroll team on
support@oasisaccountants.co.uk or call on 02031293216.

The expenses claimed must be a true record of your business expenses.

OASIS ACCOUNTANTS LIMITED

Chartered Certified Accounts

Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA

T: 02031293216 | F: 02071832659 | M: 07944334262
E: Shankar@oasisaccountants.co.uk