Business Deductions That SME’s Miss

Video supplied by The Accountancy Partnership

Tax detectable business expenses can be a real money saver for many businesses but small businesses, particularly start-ups and sole traders, are missing out; partly because they don’t know what can be claimed and partly because they don’t want to hand in an incorrect tax return. So what should your small business be claiming for?

Costs Incurred By You or Your Staff

Phone and internet bills can be claimed as a business expense. You can also claim any relevant magazine or periodical subscriptions as a business expense; ditto any membership fees due to related societies or clubs. If you staff require uniforms or specific work wear then this is also a business expense.

Work Environment

If you rent an external office then this is tax deductible. Any utility bills such as electricity and gas can also be claimed for along with repair and replacement to furniture, fixtures and fittings. It is worth remembering though that if you own your business premises you cannot claim against its value, sale or any loans taken out against it.

Office Equipment

This is probably where small businesses can make the easiest saving. Almost every item of stationary in your office can be claimed as a genuine business expense and, while these items may not have much value individually, if you add together their collective value you will have quite a significant sum.


Claiming for fuel used by company cars is one of the trickier propositions as it depends entirely on the type of car you are driving and how many miles you cover. Hire cars for business trips can be claimed against more easily. Eco-friendly cars such as hybrids are in the lowest tax bracket for company cars so if you are renewing your business vehicles then it may be worthwhile going green.


Any meals you have to eat outside of the office due to business commitments can be submitted as expenses. The tax authorities do monitor these claims for reasonable use though so be sure to stick to modestly priced restaurants and only dine with clients or business partners if you want to submit a claim.

The expenses mentioned above apply to the majority of small businesses and if you have a real reason to claim for them then you should. If there are any claims you believe you may be entitled to but are unsure about then consult your tax authorities or a small business accountant.

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About Collaborative Post is happy to provide guest posting opportunities for small business owners. This article was created by one of our contributors.

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