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<h2>Introduction to Autumn Budget Payroll Changes</h2><p>The Autumn Budget often brings a slew of changes that can impact businesses in various ways. This year, the focus is on payroll adjustments that business owners need to understand to ensure compliance and optimize their financial strategies. Whether you're a small business owner or manage a larger enterprise, staying informed about these changes is crucial for effective financial planning.</p><figure id="figure-hvzv9jrs1m6tes5pj"><img id="hvzv9jrs1m6tes5pj" src="https://cdn.durable.co/getty/aT3OWMwveQxDaWSD7USsJMsmJEV3Zfw73msZMYdftzehMbdZskmT7bhn5iDgvhQl.jpeg" alt="budget meeting" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/aT3OWMwveQxDaWSD7USsJMsmJEV3Zfw73msZMYdftzehMbdZskmT7bhn5iDgvhQl.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Key Payroll Adjustments</h2><p>One of the most significant changes in this year's budget  are the changes to National Insurance Contributions (NICs) for employers. The threshold for NICs has been adjusted, impacting both employers and employees. It's essential for businesses to update their payroll systems to accommodate these new thresholds and ensure accurate deductions.</p><p>A second change is the national minimum wage increasing.&nbsp;</p><p>Both of these changes come into effect from April 6th 2025.</p><h2>What is changing?</h2><h3>National Insurance for employees</h3><p>Employees are liable to primary Class 1 NICs on their earnings if they exceed the Lower Earnings Limit (LEL). The LEL is set at £123 per week for 2024-25. However, an employee only starts paying NI when they earn over the primary threshold (PT), which is set at £242 per week. In effect, while no NIC is paid on earnings between these two thresholds, the NIC is ‘treated as paid’, which maintains their entitlement to contributory benefits for that payment period. </p><p>Earnings above the PT are charged NICs at a rate of 8%, subject to a cap at the upper earnings limit (UEL), which is set at £967 per week. Earnings above the UEL are charged NICs at a rate of 2%.</p><p>The LEL for 2025-26 will be increased from £123 per week to £125 per week. However, the PT will remain the same at £242 per week. The UEL is also being kept at its current threshold of £967 per week for 2025/26. </p><p>This means that there will be no change to the amounts of NI an employee pays in 2025/26, when compared to the current tax year.</p><h3>National Insurance for employers</h3><p>Employers pay secondary Class 1 NICs on employee earnings at a rate of 13.8% on earnings above the secondary threshold (ST). The ST is set at £175 a week for 2024/25. Employers are also liable to pay Class 1A NICs on benefits provided for employees, and Class 1B NICs on PAYE Settlement Agreements (PSAs), both at a rate of 13.8%. These amounts are on top of the salary they pay their employees.</p><p>Small employers can claim the ‘employment allowance’. This provides a flat rate deduction for businesses and charities against their annual employer NICs bill, currently set at up to £5000 if you are eligible.</p><p>For 2025-26 the employers ST is being reduced from £175 per week to £96 per week. This means that employers will have to begin paying employer Class 1 NI on lower earnings, and at a higher rate of 15%.</p><p>To help, the employment allowance will increase from £5,000 to £10,500, but the tax-free employers NIC band drops from £9,100 to £5,000 per employee.&nbsp;</p><h3>Minimum wage</h3><p>The minimum wage is increasing from £11.44 to £12.21 for ages 25 and over.&nbsp;</p><p>18+ see a rise from £8.60 to £10.00.</p><p>Under 18 and apprentices will see a rise from £6.40 to £7.55.</p><p>This will likely have a knock on effect to employees bring paid above this rate, as they don't like to see the gap closing!</p><h2>Implications for Small Businesses</h2><p>For small business owners, these payroll changes can have a pronounced impact. The increase in NICs may lead to higher operating costs, affecting cash flow and profitability. However, there are also opportunities to leverage certain tax reliefs and incentives introduced in the budget to mitigate these effects.</p><figure id="figure-jhdlqo897m6tesc7m"><img id="jhdlqo897m6tesc7m" src="https://cdn.durable.co/getty/12R2r4ICXzHCMgDODyMxZy3FbiK7Ej4KSihQizhWmbJV1qB1f037Og2AvYD5VFZs.jpeg" alt="small business owner" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/12R2r4ICXzHCMgDODyMxZy3FbiK7Ej4KSihQizhWmbJV1qB1f037Og2AvYD5VFZs.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Adapting to Payroll System Updates</h3><p>Updating your payroll system is a critical step in adapting to the changes introduced in the Autumn Budget. Ensure that your software is configured to apply the new tax bands and NIC thresholds correctly. Failing to do so could result in compliance issues and potential penalties.</p><p>Many payroll service providers offer updates and support during budget change periods. Consider reaching out to your provider for assistance or guidance on implementing these updates seamlessly into your existing systems.</p><h3>Employee Communication</h3><p>It's also important to communicate any changes in payroll calculations to your employees. Keeping your team informed about how their take-home pay might be affected can prevent misunderstandings and build trust within your organization. Providing transparent information about adjustments helps maintain morale and confidence among staff members.</p><figure id="figure-4xdhxocgo9m6tesj5t"><img id="4xdhxocgo9m6tesj5t" src="https://cdn.durable.co/getty/1b1VpDJYf4cyKdpSm6LuWpVriQirPXCk3iJ5EljrWVtlbmLWcPSXrKw3FJMeZtuV.jpeg" alt="employee meeting" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/1b1VpDJYf4cyKdpSm6LuWpVriQirPXCk3iJ5EljrWVtlbmLWcPSXrKw3FJMeZtuV.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Leveraging Tax Reliefs and Incentives</h3><p>The Autumn Budget doesn't just bring challenges; it also presents opportunities for savvy business owners. Alongside changes in payroll, several tax reliefs and incentives have been introduced to support businesses during economic recovery phases. These include extended investment allowances and reliefs for research and development activities.</p><p>By taking advantage of these incentives, businesses can offset some of the increased costs associated with payroll changes, thus maintaining a healthy balance sheet.</p><h2>Conclusion: Staying Ahead of Changes</h2><p>Navigating payroll changes can seem daunting, but with the right approach, it becomes manageable. By staying informed, updating systems promptly, and communicating effectively with your team, you can turn potential challenges into opportunities for growth and stability.</p><p>As a business owner, being proactive in understanding and implementing these changes will not only ensure compliance but also help you make strategic decisions that benefit your business in the long term.</p><figure id="figure-xhtrccv5n7m6tesph4"><img id="xhtrccv5n7m6tesph4" src="https://cdn.durable.co/getty/235m3roZYUkG9IPzTtYJeemDYgdp8nm0fR9ilACEBFWrCGuR6DXGpQvuXdOV9lvO.jpeg" alt="business planning" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/235m3roZYUkG9IPzTtYJeemDYgdp8nm0fR9ilACEBFWrCGuR6DXGpQvuXdOV9lvO.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure>

Understanding Payroll Changes in the Autumn Budget for Business Owners

Asian woman entering expenses in accounting software

<p>The world of self-employment offers many freedoms but also comes with its own set of financial challenges. In preparation for your Income Tax Self-Assessment, one of the most important aspects to understand when running your own business is how to manage expense claims effectively. Knowing which expenses are essential and how to claim them can significantly impact your bottom line.</p><figure id="figure-4wxce9u5a4m4v7pnkb"><img id="4wxce9u5a4m4v7pnkb" src="https://cdn.durable.co/getty/19S1UhN2dAFBNFB8YdKgu0CUES8UNFDLbNQlaNXEsHHmXsk9E2FzkIZfOu2GjVvT.jpeg" alt="freelance work" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/19S1UhN2dAFBNFB8YdKgu0CUES8UNFDLbNQlaNXEsHHmXsk9E2FzkIZfOu2GjVvT.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Understanding Essential Expense Claims</h2><p>For the self-employed, expense claims are a critical way to reduce taxable income. However, not all expenses are created equal. It’s crucial to understand which costs are considered legitimate business expenses and can be claimed against your income.</p><p>Commonly claimed expenses include office supplies, travel costs, and even a portion of your home bills if you work from home. Understanding these categories will help you keep more money in your pocket.</p><h3>Office Supplies and Equipment</h3><p>Any items you purchase that are used solely for business purposes can be claimed as expenses. This includes computers, printers, stationery, and other office equipment, as well as rent and utility bills paid if your not working from home. These purchases are generally straightforward to claim, as long as you keep detailed records and receipts.</p><p>It’s important to distinguish between small purchases and capital expenses, which are larger items that may need to be depreciated over several years if you are using traditional accounting methods.</p><p>You can also claim for phone, mobile phone, fax and internet bills.&nbsp;</p><figure id="figure-ua0344lbfm4v7pt8c"><img id="ua0344lbfm4v7pt8c" src="https://cdn.durable.co/getty/20xftsFTs8oWgOLgt8GMczYJduekXZgOXqSFqLHrrUok82OcjnsaqV0Ud7aQjSeu.jpeg" alt="office supplies" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/20xftsFTs8oWgOLgt8GMczYJduekXZgOXqSFqLHrrUok82OcjnsaqV0Ud7aQjSeu.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Travel and Accommodation</h3><p>If you need to travel for business meetings or conferences, or to a clients office, these expenses can often be claimed. This includes the cost of transportation, whether by car, train, or plane, as well as accommodation costs if you need to stay overnight.</p><p>Keep in mind that only business-related travel can be claimed. Personal trips or the portion of a trip that is not business-related should not be included in your expense claims.</p><h3>Home Office Expenses</h3><p>If you operate your business from home, a portion of your household bills can be claimed as business expenses. This might include a percentage of your electricity, heating, council tax and internet costs. The percentage is generally calculated based on the size of the workspace in relation to the entire house.</p><p>Ensure you have a dedicated area in your home for work purposes to maximize the claims you can make for home office expenses.</p><figure id="figure-4agegm3yn5m4v7pz4w"><img id="4agegm3yn5m4v7pz4w" src="https://cdn.durable.co/getty/28xp5y3wUL52BKB6QrdH9ToJ75liachZlZwiSw5qYtMrGYY3nkrziuQaWC4zytqw.jpeg" alt="home office" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/28xp5y3wUL52BKB6QrdH9ToJ75liachZlZwiSw5qYtMrGYY3nkrziuQaWC4zytqw.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Uniform, Staff costs &amp; Training</h3><p>If you require uniform for your work, this counts as an allowable expense. So does any training you undertake for CPD or to advance your skill set.</p><p>You may also have staff, or sub-contracting costs to consider.</p><h3>Financial/Legal costs</h3><p>Items like insurance, bank charges, accountancy fees and legal fees are all claimable if they are relating to your business.</p><h3>Advertising &amp; Marketing</h3><p>Any paid advertising, or employing a freelance marketer for example, can be claimed.</p><h3>Cost of sales</h3><p>Any goods, services or softwares purchased in order to provide your service or resale of goods, are considered Costs of Sales. These are also allowable expenses.</p><h2>Utilizing Professional Help</h2><p>While managing expenses can be done independently, many self-employed individuals find it beneficial to consult with an accountant or financial advisor. These professionals can provide guidance on maximizing your claims and ensuring compliance with tax regulations.</p><p>An accountant can also help you set up a system for tracking expenses accurately throughout the year, making the process much easier come tax time. Soon, the MTD-IT will make it mandatory to have compatible software in order to submit quarterly returns. Having good practices in place now, will help you to be better prepared for this.</p><h3>Keeping Detailed Records</h3><p>The key to successful expense claims is meticulous record-keeping. Keep all receipts and invoices organized, and consider using accounting software to track these expenses systematically. This not only helps with claiming expenses but also provides valuable insights into your business spending patterns.</p><p>Remember, accurate records are essential not just for tax purposes but also for understanding your business's financial health.</p><figure id="figure-1s7m49lofam4v7q597"><img id="1s7m49lofam4v7q597" src="https://cdn.durable.co/getty/30DMPNZGDnepqypNcyKvYwEx9F2nBho0YqVGduinc8jwfK9lFuzcg8TOt5jIHi7C.jpeg" alt="accounting software" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/30DMPNZGDnepqypNcyKvYwEx9F2nBho0YqVGduinc8jwfK9lFuzcg8TOt5jIHi7C.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Conclusion</h2><p>Navigating expense claims as a self-employed individual can be complex, but with the right knowledge and tools, it becomes manageable. By understanding what constitutes an essential expense and keeping detailed records, you can ensure that you’re making the most of your entitlements and keeping your business finances healthy.</p><p>Ultimately, staying informed and organized will help you focus more on growing your business and less on worrying about finances. Contact me for further information on how I can help you.</p>

Essential Expense Claims for the Self-Employed

Black female hand holding gift box on blue

<h2>Do you know about Trivial Benefits?</h2><p>Trivial benefits allow you to provide small perks to yourself and/or your employees, without paying Tax or National Insurance, provided certain criteria are met.</p><h3>How Trivial Benefits work:</h3><p>The value <strong>must not exceed £50 (including VAT):</strong> If you spend even a penny over, the entire amount is taxable, so it’s essential to stay within this limit.</p><p>The benefit cannot be cash, a cash voucher or redeemable for cash. While you can't use trivial benefits for cash gifts, <strong>you can purchase gift vouchers</strong> <strong>or items.</strong></p><p>It must not be part of your contractual obligations or a reward for working, for example: a performance bonus. Trivial benefits are intended as perks. This means you’re giving yourself a treat, not something linked to company performance or productivity.</p><figure id="figure-uy37x7qg4fm3r9fc31"><img id="uy37x7qg4fm3r9fc31" src="https://media.gettyimages.com/id/1483591056/photo/thumbs-up-hands-and-business-people-agreement-with-diversity-yes-and-success-with-motivation.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=8ixuN1e7XqIX2yTsgfyDoVlpFUzwk2Q2xdeuWurgYZc=" alt="Thumbs up, hands and business people agreement with diversity, yes and success with motivation and collaboration. Achievement, hand sign and emoji with employee group, like and solidarity with team" title="Thumbs up, hands and business people agreement with diversity, yes and success with motivation and collaboration. Achievement, hand sign and emoji with employee group, like and solidarity with team" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1483591056/photo/thumbs-up-hands-and-business-people-agreement-with-diversity-yes-and-success-with-motivation.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=8ixuN1e7XqIX2yTsgfyDoVlpFUzwk2Q2xdeuWurgYZc=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><p>The total annual cap for directors is £300! Directors of a company can claim up to £300 in trivial benefits each tax year. This is 6 x £50 benefits including VAT. Note, <strong>these must be purchased separately!</strong> You could buy 6 £50 vouchers in one go, but they must be separate purchases to qualify.&nbsp;</p><p>You could shave hundreds a year off your profit and thus reduce your corporation tax bill, and get a bonus perk for doing so. You could save even more if giving a gift to your employees too.</p><p>Speak to us for more information.</p>

Trivial Benefits

person wearing suit reading business newspaper

<h3>Understanding the Basics</h3><p>Bookkeeping is essential for small business owners. It helps track income and expenses. This ensures you have a clear picture of your financial health. Make it a habit to keep records up to date. We are more than happy to assist you with keeping your records clean and up to date.</p><h3>Separate Personal and Business Finances</h3><p>Keep personal and business finances separate. Open a dedicated business bank account. This makes it easier to track business transactions. It also simplifies tax filing.</p><h3>Use Accounting Software</h3><p>Consider using accounting software. It can streamline your bookkeeping process. Many options are available that cater to small businesses. Choose one that suits your needs and budget, or ask us for advice on which to use!</p><h3>Track Every Expense</h3><p>Record <strong>all</strong> business expenses. This includes small purchases. Keeping detailed records helps identify deductible expenses. It also provides insights into spending patterns. If you are VAT registered, make sure you keep every receipt so you can claim your VAT back.</p><h3>Credit Control</h3><p>Ensuring you are getting paid is the bloodline of your business. Keep on top of your sales invoicing and keep an eye on your debtors, ensuring you receive all the money you are owed.</p><h3>Organise Receipts</h3><p>Organize receipts efficiently. Use digital tools to scan and store them. This reduces clutter and ensures easy access when needed.&nbsp;</p><h3>Regularly Reconcile Accounts</h3><p>Reconcile your accounts regularly. This involves matching your records with bank statements. It helps identify discrepancies and ensures accuracy.</p><h3>Set a Schedule</h3><p>Set a regular schedule for bookkeeping tasks. Weekly or monthly reviews work well. Consistency helps maintain accurate records.</p><h3>Forward plan</h3><p>Be aware of dates and amounts due for things like VAT, PAYE and Tax. You do not want to be hit with a fine on top of the payments you need to make. Budget for these payments by putting aside the money so you are not caught short.</p><h3>Hire a Professional</h3><p>Consider consulting a bookkeeping professional like ourselves. We can provide valuable insights and guidance. This ensures your records are accurate and compliant.</p><p>By following these tips, small business owners can manage their finances effectively. Proper bookkeeping leads to informed decisions and long-term success.</p><p>Allow us to be your success partner with your Bookkeeping needs. Book at call via our link (top right button).</p>

Top 10 Bookkeeping Tips for Small Business Owners

<h2>Understanding Anti-Money Laundering Regulations</h2><p>Anti-money laundering (AML) regulations are essential for businesses to understand and follow. These rules help prevent illegal activities like money laundering and terrorist financing. By adhering to AML regulations, businesses can protect themselves and contribute to a safer financial system.</p><p>Money laundering involves disguising the origins of illegally obtained money. Criminals use various methods to make this money appear legitimate. Governments around the world have put AML regulations in place to combat this issue. These regulations require businesses to take specific actions to detect and prevent money laundering.</p><h3>Key Components of AML Regulations</h3><p>There are several key components that businesses must follow under AML regulations. One important aspect is the <strong>Know Your Customer (KYC)</strong> process. KYC involves verifying the identity of clients to ensure they are who they claim to be. This step helps prevent criminals from using fake identities to launder money.</p><p>Another critical component is <strong>monitoring transactions</strong>. Businesses must keep an eye on transactions for any suspicious activity. This includes looking for unusual patterns or large sums of money moving without clear reasons. By monitoring transactions, businesses can identify and report potential money laundering activities.</p><figure id="figure-aevjnpyt99m056jvpj"><img id="aevjnpyt99m056jvpj" src="https://images.unsplash.com/photo-1606189934846-a527add8a77b?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyN3x8ZmluYW5jaWFsJTIwbW9uaXRvcmluZ3xlbnwwfHx8fDE3MjQzMjQ5NDV8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="financial monitoring" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1606189934846-a527add8a77b?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyN3x8ZmluYW5jaWFsJTIwbW9uaXRvcmluZ3xlbnwwfHx8fDE3MjQzMjQ5NDV8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><p>Businesses must also keep detailed records of their clients and transactions. These records should be maintained for a specified period, usually five years. Proper record-keeping ensures that businesses can provide necessary information to authorities when required.</p><h3>Compliance Programs</h3><p>To meet AML regulations, businesses should have a compliance program in place. This program includes policies and procedures designed to prevent money laundering. It also involves regular training for employees to ensure they understand and follow AML regulations.</p><figure id="figure-p82y40q3eim056jwzs"><img id="p82y40q3eim056jwzs" src="https://media.gettyimages.com/id/1614141950/photo/mid-adult-woman-paying-attention-during-a-class-in-lecture-hall.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=aKJ4CyeKHV45H38dKbGJBotAOXbehYvUQkVi0enPUQE=" alt="Mid adult woman paying attention during a class in lecture hall." title="Mid adult woman paying attention during a class in lecture hall." class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1614141950/photo/mid-adult-woman-paying-attention-during-a-class-in-lecture-hall.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=aKJ4CyeKHV45H38dKbGJBotAOXbehYvUQkVi0enPUQE=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>The Role of Technology</h3><p>Technology plays a significant role in helping businesses comply with AML regulations. Various software tools can assist with KYC processes, transaction monitoring, and record-keeping. These tools can help businesses detect suspicious activities more efficiently and accurately.</p><p>By leveraging technology, businesses can stay ahead of criminals who constantly find new ways to launder money. Continuous updates and improvements to AML software are essential to keep up with evolving threats.</p><h3>The Importance of Staying Informed</h3><p>AML regulations can change over time, so it is crucial for businesses to stay informed about any updates. Regularly reviewing and updating compliance programs ensures that businesses remain compliant with current regulations.</p><p>Businesses can also benefit from participating in industry forums and workshops. These events provide valuable insights and best practices for AML compliance. Networking with other professionals can also help businesses stay informed about the latest trends and challenges in the field.</p><h3>You are in Safe Hands</h3><p>Gemma Williams Bookkeeping Solutions own a Practice Licence with the Institute of Certified Bookkeepers (ICB for short), and therefore have AML supervision provided by them. We must comply with AML regulations as much as you have to, so please do not be offended when we ask for documents to confirm your identity when you begin a contract with us.</p><figure id="figure-4or1h4vlmm056qlmw"><img id="4or1h4vlmm056qlmw" src="https://cdn.durable.co/blocks/1dl9MzKYNDe3a0TX3dDUtA8nj59mfuRQjr64Vh5xHdTMOtx3hz2DzI19OzdTeny9.png" alt="white Canon cash register" title="white Canon cash register" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 1/1; object-position: undefined undefined;" data-corners="default" data-aspect="1:1" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>

Understanding Anti-Money Laundering Regulations

three crumpled yellow papers on green surface surrounded by yellow lined papers

<p>Let's talk about what expenses you as a Director of your Limited Company, can claim.</p><p>Running a limited company comes with various expenses. However, understanding which costs you can claim is crucial for effective financial management. Knowing these can help reduce your taxable income and maximize your profits.</p><p>As a Director, you cannot claim personal expenses for your business on your Income Tax Self Assessment (ITSA). Instead, these are reclaimable and payable by your business.</p><p>So, let GWBS help you make sure you have all your expenses covered, which will help reduce your Corporation Tax bill.</p><p>Here are some of the things you can claim...</p><h2>Office Supplies and Equipment</h2><p>One of the most common expenses you can claim is office supplies. This includes items like pens, paper, and printer ink. You can also claim costs for office equipment such as computers, printers, and software.</p><p>Ensure you keep all receipts and invoices for these purchases. Proper documentation is essential for accurate bookkeeping and tax filing.</p><figure id="figure-1yt3ibt8dlxbhdvlv"><img id="1yt3ibt8dlxbhdvlv" src="https://images.unsplash.com/photo-1523289333742-be1143f6b766?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw2fHxvZmZpY2UlMjBzdXBwbGllc3xlbnwwfHx8fDE3MTgxNzU1OTN8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="office supplies" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1523289333742-be1143f6b766?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw2fHxvZmZpY2UlMjBzdXBwbGllc3xlbnwwfHx8fDE3MTgxNzU1OTN8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Travel using your personal car. However, the travel must be for business purposes only.</h2><p>It's important to keep detailed records of your travel, including dates, destinations, and reasons for the trip. This will help you justify these expenses if questioned by tax authorities. We can help you with mileage claim forms which can claim you up to 45p per mile. You can also claim for parking, tolls, congestion charges, subsistence, accommodation and public transport.</p><h2>Utilities and Rent</h2><p>If you rent an office space, you can claim the rent as a business expense. Additionally, you can claim utility costs such as electricity, water, and internet. If you work from home, you can claim a portion of your home utility costs.</p><p>To claim home office expenses, calculate the percentage of your home used for business. Apply this percentage to your utility bills to determine the claimable amount.</p><figure id="figure-ld3h1skpelxbhdyec"><img id="ld3h1skpelxbhdyec" src="https://images.unsplash.com/photo-1578225023982-e2b97d9922e9?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw3fHxvZmZpY2UlMjByZW50fGVufDB8fHx8MTcxODE3NTU5Nnww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="office rent" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1578225023982-e2b97d9922e9?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw3fHxvZmZpY2UlMjByZW50fGVufDB8fHx8MTcxODE3NTU5Nnww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Subscriptions</h2><p>You can claim the cost of subscriptions to professional journals and memberships in professional organizations. These resources help you stay updated in your field and improve your business operations.</p><h2>Marketing and Advertising</h2><p>Marketing and advertising expenses are crucial for business growth. You can claim costs for online ads, print materials, and even promotional events. These expenses help attract new clients and retain existing ones.</p><p>Ensure you keep records of all marketing activities and their costs. This will help you track the effectiveness of your marketing strategies and justify these expenses during tax filing.</p><figure id="figure-0mp3qxqlsmlxbhe0kx"><img id="0mp3qxqlsmlxbhe0kx" src="https://images.unsplash.com/photo-1423784346385-c1d4dac9893a?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8bWFya2V0aW5nJTIwYWRzfGVufDB8fHx8MTcxODE3NTU5OXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="marketing ads" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1423784346385-c1d4dac9893a?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8bWFya2V0aW5nJTIwYWRzfGVufDB8fHx8MTcxODE3NTU5OXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Insurance</h2><p>Having the right insurance coverage is crucial for mitigating risks and ensuring business continuity. Keep all insurance documents and payment receipts for accurate bookkeeping.</p><h2>Training and Development</h2><p>Investing in training and development for yourself and your employees is beneficial for business growth. You can claim costs for courses, workshops, and certifications that enhance your skills and knowledge.</p><p>These expenses not only improve your business operations but also contribute to long-term success. Keep records of all training activities and their costs for accurate expense claims.</p><figure id="figure-gs9gpj8mvlxbhe2of"><img id="gs9gpj8mvlxbhe2of" src="https://images.unsplash.com/photo-1432888498266-38ffec3eaf0a?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8dHJhaW5pbmclMjB3b3Jrc2hvcHxlbnwwfHx8fDE3MTgxNzU2MDJ8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="training workshop" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1432888498266-38ffec3eaf0a?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8dHJhaW5pbmclMjB3b3Jrc2hvcHxlbnwwfHx8fDE3MTgxNzU2MDJ8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Other things you can claim...</h2><p>Bank charges - such as bank fees, transaction fees and loan interest.</p><p>Phone bills - If your mobile phone contract is in your business name, you can claim the entire bill as an expense. If you make calls from a home phone line, you can also claim for these - keep records!</p><p>Professional fees - Such as your accountant, consultant, solicitor or other legal fees.</p><p>Entertainment - Business entertainment is not an allowable expense against profits. However, if you were to put on a staff party, this is reclaimable up to £150 per head.</p><p>Health checks and eye test costs.</p><p>Start up costs for up to 7 years before trading. You must keep accurate records.</p><p>Pension contributions - there is a £40,000 limit to what you pay in tax-free.</p><h2>The Rules</h2><p>You can only claim for the costs you incur wholly and exclusively for setting up and running your business.</p><p>You can't claim for expenses that have a dual purpose for buisness and personal use. E.g. extending a work trip for some personal time - you can only claim for the business days.</p><p>Business expenses can be paid for from your business account, or reclaimed from the business if using your personal account.</p><p>Keep accurate records! This is imperative if you were to receive queries or an investigation from HMRC in the future.</p><p><br></p><p>We hope this article gives you some insight. We are happy to check your accounts and make sure you are claiming all you can. Contact us now!</p>

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