Corporation tax
Allowable company expenses must be wholly and exclusively for the trade. A practical list of what is claimable, what is not, and where directors get caught.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityAnything incurred wholly and exclusively for the trade: salaries, subcontractors, software, professional fees, business insurance, travel, stock, equipment, business use of home and employer pension contributions. Entertaining clients and anything with a personal purpose are not deductible.
The claimable list
Where directors get caught
Anything incurred wholly and exclusively for the trade: salaries, subcontractors, software, professional fees, business insurance, travel, stock, equipment, business use of home and employer pension contributions. Entertaining clients and anything with a personal purpose are not deductible.
Common deductions include staff and director salaries and employer NIC, employer pension contributions, accountancy and legal fees on trading matters, software subscriptions, professional subscriptions on HMRC's approved list, business insurance, advertising, bank charges and interest, training that maintains existing skills, and mileage at 45p for the first 10,000 business miles in your own car.
Capital items such as computers, tools and equipment go through capital allowances rather than straight to the profit and loss, usually with the annual investment allowance giving full relief in year one.
Client entertaining is never deductible, though staff entertaining within the £150 per head annual event exemption is. Clothing is not deductible unless it is protective or a genuine uniform. Ordinary commuting to a permanent workplace is not business travel. Fines and most penalties are disallowed.
Paying a personal cost from the company account does not make it a business expense. It becomes a director's loan or a taxable benefit, and unpicking a year of mixed spending costs more in bookkeeping than it ever saves in tax.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
Yes, in full and with no benefit in kind, if the contract is in the company's name. A personal contract is only claimable on itemised business calls.
Training that maintains or updates the skills used in the trade is deductible. Training for a wholly new trade usually is not.
Yes. Keep them for six years. A bank statement line is not evidence of what was bought or why.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
