Discover which office allowable expenses qualify for reimbursement for your business with our easy guide. Stay informed, compliant, and up-to-date on your business’ finances.
There’s a lot that goes into running a business, no matter the sector, and it can often feel overwhelming as you fight to stay on top of your budgets and profits. Allowable expenses seek to reduce how much you pay for your profits, so it’s important to understand how they work.
Wondering which allowable property expenses and office expenses you can claim for your business? Read on for AXA’s guide to claiming office related expenses and understanding eligible costs such as rent, stationary and more.
Looking for information on employee expenses instead? Read our guide here.
What are office allowable expenses?
Office allowable expenses, and allowable property expenses, give you the opportunity to claim back any funds spent on items and services that relate to the running of an office space in the form of a tax relief. Renting, or owning, an office space can be an expensive venture, to say the least. But the good news is, some of these mandatory costs can be claimed back.
To ensure you’re following guidelines, we’ve outlined below some categories in which you can and can’t claim office allowable expenses:
Types of office allowable expenses
Costs related to your office space itself count as allowable office expenses. This may include the below:
- Rent for the office space or business premises
- Insurance costs
- Utility bills such as electricity and gas
- Security
- Things that can’t be included in office allowable expenses include:
- Commuting costs
- Personal meals or snacks
- Personal clothing
- Donations to non-qualified organisations
Please note, you cannot claim expenses if you use the £1,000 tax-free ‘trading allowance’.
Office expenses FAQs
How much can I claim for office expenses?
There’s no set limit to how much you can claim back from office allowable expenses. It depends on the business, and many other factors, such as number of employees for example. Keep your receipts handy, and your documents in order to ensure you can claim back the correct amount.
How much can I claim for using my home as an office in the UK?
The amount you can claim back for using a room or space in your home for working may differ for each individual or company. However, for HMRC, the most you can claim back a week for home working is £6 - this comes out to just £312 a year. Keep in mind that the room or space must be used or work purposes only to qualify. That means if you have a desk in your living room, for example, you would not be able to claim back.
You must also work a minimum of 25 hours a week from home and have an employer that doesn’t have an office space, or live far from your office. You can’t claim this expense if you choose to work from home when an office space is available – this also applies to hybrid working models.
If you wish to claim higher than the £6 set out by HMRC, the payment is subject to National Insurance for the employer and Income Tax for the employee.
How much expenses can I claim without receipts in the UK?
You’re generally not required to provide proof of purchases when it comes to submitting a tax return in the UK. However, it’s vital that you keep the records and receipts for up to 6 years after the tax year submitted. You may be asked for proof at any time throughout those six years. Failure to provide receipts and records may result in prosecution, penalties and/or adjustments to your tax liabilities.
What is the maximum you can claim for work-related expenses?
There’s no maximum amount that you can claim for work-related, or office-related, expenses. This comes down to each individual business and office space. The amount you claim may differ year on year as the business grows or changes.Visit the gov.uk website for more info on how to submit your expenses and further reading. Need some guidance on staff or travel allowable expenses? Visit our allowable expenses article for all the information you need. For further reading, please refer to the HMRC website and their section on allowable expenses.
So there you have it! Our guide to claiming office allowable expenses in the UK.
Visit the gov.uk website for more info on how to submit your expenses and further reading. Need some guidance on staff or travel allowable expenses? Visit our allowable expenses article for all the information you need. For further reading, please refer to the HMRC website and their section on allowable expenses.
All links are checked and valid at time of publishing, 17 December 2024.
