Company Expenses

Generally, there are company and personal tax efficiencies when buying an electric company car compared to a petrol/diesel car. However, you do need to consider the commercial aspects of your finance plans/funding of the company car in your company, as electric cars are usually more expensive.

We explore some of the most frequently asked expense questions when working through your PSC.

You can claim costs such as providing equipment, services and supplies to an employee who works from home - this is on the basis that they are used only for business purposes and any private use is insignificant.

Yes, you can invite other guests, but here is the key: to be eligible to reclaim VAT and for corporation tax relief, the costs must solely be to entertain employees.

If the cost per person exceeds £150, you need to be aware of the following tax impact-the company benefits from tax relief on the expenditure- but the full amount will be a taxable benefit on your staff.

Absolutely! A limited company can pay for an annual event, and there are no personal tax implications if the total does not exceed £150 per head and is open to all members of staff.

When entertaining employees, this might be allowable for tax relief, but it could also end up being considered a benefit that your employees will be required to pay some tax on.

For clients or suppliers, you may send cards, but any gifts should be also under the value of £50 and mainly sent for promotional reasons. This doesn’t include food, drink, cigarettes, or gifts vouchers though.

As a director of your limited company, you can get your company to cover some of the business-related entertaining expenses. Entertaining expenses cover things like treating clients or buying business-related gifts.

Yes, if the sponsorship is considered capital expenditure e.g., buying a racehorse or car) or if it falls under specific disallowed expenses like entertainment expenses.