Running a small business can be exciting, rewarding, and—let’s be honest—a little overwhelming at times. Whether you’re a solo entrepreneur, freelancer, or managing a small team, staying on top of your finances is crucial. One of the best ways to keep more money in your pocket is by understanding what business expenses you can legally claim. Many small business owners choose to work with accountants in Ashford, Kent to make sure they’re maximizing deductions and staying compliant with tax laws.
Knowing your eligible deductions doesn’t just save you money during tax season—it also helps you budget better and track your financial health. In this post, we’ll break down the most common (and often overlooked) expenses you can claim as a small business owner.
1. Office and Workspace Costs
Whether you’re working from home, renting a coworking space, or leasing a commercial office, you can typically claim a portion (or all) of those costs.
Examples:
- Rent or lease payments
- Utility bills (electricity, gas, water)
- Office supplies (pens, paper, printer ink)
- Internet and phone services
Work-from-home tip: If you’re working from a dedicated home office, you may be able to claim a portion of your mortgage interest, rent, utilities, and even home insurance based on how much space is used for work purposes.
2. Travel and Mileage
If you travel for business—whether it’s to meet clients, attend a conference, or make deliveries—you may be able to claim the costs associated with those trips.
Claimable expenses include:
- Airfare or train tickets
- Hotel or Airbnb accommodations
- Car rental and parking fees
- Mileage for business-related car travel
- Tolls and fuel (if not already covered by mileage claims)
Be sure to keep a detailed log of your business trips and the purpose of each journey.
3. Marketing and Advertising
Promoting your small business is essential, and thankfully, most marketing and advertising costs are fully deductible.
Examples:
- Website hosting and domain fees
- Social media ads (Facebook, Instagram, Google)
- Flyers, brochures, and business cards
- Hiring a marketing consultant or virtual assistant
- Email marketing software subscriptions
Whether you’re investing in SEO, running Facebook ads, or paying for a billboard, you can usually write it off as a business expense.
4. Professional Services and Fees
Sometimes, it pays to hire a pro. Whether you’re working with an accountant, lawyer, or consultant, their fees can often be written off as part of your business operations.
Deductible services may include:
- Accountant or bookkeeper fees
- Legal advice and services
- Business coaching or mentorship programs
- Tax preparation services
Just make sure that these professionals are hired for business-related purposes and not for personal use.
5. Business Insurance
Protecting your small business with the right insurance is more than smart—it’s deductible.
Types of insurance you can claim:
- General liability insurance
- Professional indemnity insurance
- Workers’ compensation
- Property insurance
- Cyber liability coverage
The cost of premiums can usually be claimed as an ordinary and necessary business expense.
6. Employee Wages and Contractor Payments
If you employ staff or outsource work to freelancers or contractors, these payments are generally deductible.
This includes:
- Employee wages and salaries
- Bonuses and commissions
- Employer contributions to retirement plans
- Payments to independent contractors or virtual assistants
Just ensure that proper documentation and contracts are in place, especially for contractors.
7. Training and Education
Want to level up your skills or those of your team? Business-related training and education costs are usually deductible.
Eligible expenses:
- Online courses and webinars
- In-person workshops or conferences
- Books and eBooks related to your industry
- Subscriptions to trade journals and publications
The key here is relevance. The course or material should be directly related to your business activities or skill development.
8. Depreciation of Business Assets
If you purchase equipment, vehicles, or furniture for your business, you might not deduct the full cost upfront. Instead, you can claim depreciation over time.
Assets that can be depreciated include:
- Computers and laptops
- Cameras or photography gear
- Office furniture
- Company vehicles
- Machinery and tools
Your accountant can help determine the depreciation schedule that best suits your purchases.
9. Software and Subscriptions
As a modern small business owner, you’re likely using a variety of digital tools to stay organized and efficient. The good news? These can often be written off.
Common claimable software:
- Accounting tools (QuickBooks, Xero)
- CRM software (HubSpot, Salesforce)
- Project management tools (Asana, Trello)
- Video conferencing tools (Zoom, Microsoft Teams)
- Cloud storage (Google Drive, Dropbox)
Be sure the subscription is used for business purposes.
10. Bank Fees and Interest
Keeping your finances in order comes with a few costs, too. You can usually claim fees associated with your business accounts.
You may be able to deduct:
- Business bank account maintenance fees
- Interest on business loans or credit cards
- Transaction or transfer fees
- Merchant fees from platforms like PayPal, Stripe, or Square
Just make sure the account is strictly used for business transactions.
A Word of Caution: Keep Good Records
All of the above expenses can save you a lot of money, but only if you keep detailed, accurate records. Always keep receipts, invoices, mileage logs, and digital statements to support your claims. It’s also a smart idea to use accounting software or hire a virtual assistant to track everything for you.
Pro tip: Open a separate bank account for your business to keep personal and professional expenses clearly divided. This makes claiming expenses (and surviving a tax audit) so much easier.
Final Thoughts
Running a small business is no small feat. But understanding what expenses you can claim gives you a major advantage. It not only lightens your tax burden but also helps you make informed financial decisions throughout the year.
So next time you invest in a new tool, attend a conference, or pay for a professional service, remember—you might be able to claim it. And if you’re ever unsure, don’t hesitate to check in with a tax professional or accountant who understands small business finances.
After all, every dollar you save is a dollar you can reinvest back into your passion, your business, and your future.
