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Claiming Business Expenses

Claiming business expenses template

Claiming business expenses can be complicated but allows you to reclaim some or all of your expenditure. In this guide, we will explain some of the most common costs that can be included.

We have produced a free Excel business expense template, which you can download and use. Full instructions can be found on this website.There are two different templates depending on whether your business is VAT registered or not.

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What Business Expenses you can Claim

Business Mileage

If you use your own vehicle for business travel, you can claim an amount per mile, which is 45p for the first 10,000 miles and 25p per mile over 10,000 miles. You cannot claim for any mileage between home and work. When you use this rate, you cannot claim any other expenses in relation to your vehicle e.g. road tax, repairs and insurance.

If your vehicle is mainly used for business use, you can claim for all your fuel, insurance, repairs and road tax. You must make sure that you deduct any private use. This can be completed by calculating the percentage of private travel and calculating the figure. An example of this is that a small business owner spends £250 in a month on their petrol and running costs. They travel 500 miles in total, but 50 of these are private miles. 10% is classed as private use £250 - £25=£225 can be claimed.

If you have a company car or van the rules are more complicated, and you will need to find out further information on www.gov.uk

General Business Expenses

Most general office expenses can be reclaimed including stationery, phone, ink, printing, advertising, insurance, rent, utilities and purchasing goods for resale.

Claiming expenses for working from home

If you work from home, you can claim either a fixed rate or a percentage of your costs.

The fixed rate is calculated on the number of hours worked at home per month.

  • 25 to 50 hours = £10 per month
  • 51 to 100 hours = £18 per month
  • 101 or more hours = £26 per month

An example of a fixed expense is that you work 70 hours at home per month; you can therefore claim 12 x £18 equals £216 per year.

If you claim a proportion of your costs, you will need to include things like: heating, electricity. Council tax, mortgage interest, rent and internet. Then calculate the proportion that relates to your business.

Example: 1 room of a 5 room house is used for business 3 days per week. The total house expense is £200 per month. £200 divided by 5 rooms is £40. It is only used for 3 days per week, therefore claim 3/7 of £40, which equals £17.14 for 3 days.

Business Expense Template

We have developed two Excel templates to record your Expenses. There is a VAT and non-VAT option, both allow you to enter the mileage and all other payments that have been made. Business Expense Template

Further Advice for Claiming Business Expenses

Claiming expenses against your business can be complicated, the above is only a guideline and full details can be found on www.gov.uk

Return from claiming business expenses to Excel bookkeeping templates.