Help Centre

Claiming limited company expenses

Your company’s expenses can be paid in two ways, directly from the company account or as a ‘reimbursed expense’ when paid for out of your own pocket.

With regards to reimbursed expenses, directors are able to refund themselves at any time from the company account, but must keep receipts to justify the expenditure. The rule of thumb when claiming for expenses is that you can only claim within HMRC’s parameters, which define allowable expenses as being ‘wholly and exclusively’ incurred in the performance of your duties.

HMRC will allow your claim if you meet these conditions. When there’s a dual purpose to your claim it’s unlikely to be accepted, because the expense would be needed regardless of the business, for instance, clothes. However, if the dual purpose is only incidental because of a business necessity the claim may still be valid, such as protective work clothes or uniforms that could also be used for personal use.

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.