The main aim of running a business is to create a profit or surplus that can either be reinvested or simply used to provide a living. However, running a business incurs costs and expenses. Some of these expenses can be claimed back in tax breaks and relief from Her majesty’s Revenue and Customs. Which ones can be reclaimed? https://chippendaleandclark.com, a Bookkeeping Chippenham based firm is more than capable of providing you with an up to date service and guidance on the subject.
Here are a few points to consider.
- Expenses can be any services and goods that are required by the business in order for it to run.
- These services or goods must be used only by the business. There can be no element of personal use.
- The most important to look at is the tax deductables. These reduce the tax bill that you pay on your profits. They include travel, internet services such as web hosting, and even the computers to use within your business. You can also claim back VAT on these purchases.
- The other is the non-deductibles. This is an expense such as providing corporate entertainment for clients. They can still be recorded but will not reduce the company tax bill nor can the VAT be claimed back.
It is essential that you look to reduce the tax bill that your company pays by as much as you can. This will go some way to creating greater profits and ensure the businesses survival in the long term.
