If you run a limited company, there are several tax-efficient expenses that often get overlooked:
Professional subscriptions & memberships
Certain industry bodies, trade memberships or professional subscriptions relevant to your role can often be paid through the company as an allowable business expense.
Trivial benefits
Ltd companies can provide directors/employees with small gifts (like meals, wine or vouchers) within HMRC rules – without tax implications.
Use of home as office
Rather than just simplified expenses, Ltd companies can reimburse directors for certain home working costs correctly and tax-efficiently.
Pension contributions through the company
Employer pension contributions are often far more tax-efficient than taking additional salary personally.
Mobile phone contracts
A company-paid mobile phone for an employee/director is usually an allowable expense – including the handset and contract.
A lot of valuable tax reliefs aren’t widely known, which is why regular reviews can make a real difference for small Ltd companies.
