What Expenses Can A Director Of A Limited Company Claim | MSF Associates

Being a director of a limited company comes with a lot of financial responsibility. As a director, you are expected to maintain the company's accounts and submit them to HMRC (His Majesty's Revenue and Customs) on a yearly basis. Directors also have to file an annual return with Companies House. Thankfully, there are several expenses that directors can claim against their taxable income. Here is a list of some of the most common expenses that directors can claim: 


What Can I Claim?


  • Travel expenses: This includes public transportation costs as well as any mileage incurred while traveling for business purposes. If you use your own vehicle, you can claim up to 45p per mile.
  • Accommodation: If you have to travel for business purposes and stay overnight, you can claim the cost of your accommodation.
  • Meals and entertainment: You can claim some of the costs of business meals and entertaining clients.
  • Office expenses: This includes the cost of rent, utilities, stationery, and other office supplies. 
  • Professional fees: This includes the cost of hiring accountants, solicitors, and other professional services. 


However, it's important to note that not all expenses incurred by directors are tax-deductible. For example, personal travel expenses are not tax-deductible. In addition, any gifts or donations made to charities are not tax-deductible. Finally, any late payment fees incurred by the company are also not tax-deductible.


It's also important to keep receipts for all expenses claimed so that you can provide them to HMRC if needed. Keep in mind that claiming expenses that are not business-related can result in a hefty fine from HMRC. If you're ever unsure about whether or not an expense is tax-deductible, it's always best to speak with an accountant or financial advisor. 


Being a director of a limited company comes with many financial responsibilities. However, there are several expenses that directors can claim against their taxable income which can help reduce the amount of money owed to HMRC each year. These expenses include travel costs, accommodation costs, meal and entertainment costs, office expenses, and professional fees amongst others. It's important to keep receipts for all expenses claimed and only claim business-related expenses to avoid incurring a fine from HMRC.


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