Finding the necessary funds for your business can be a challenging task. You can find multiple grants and reliefs offered by the government department, but understanding the steps, stages, and rules is the tricky part. A professional accountant can help you and you can compare accountants in UK through our platform.
We will shed some light on the deductibles for your employees.
Government support for businesses affected by the coronavirus
This is important regarding the current situation as we enter 2021 battling with coronavirus. The UK government soon after the pandemic started a scheme for coronavirus hit businesses in order to support them. The government announced a package of relief measures to help struggling businesses due to Covid related lockdowns. If your business is suffering from the lockdown affects you can claim coronavirus related support.
Capital allowances
Some expenditures have a lasting benefit. These may include office furniture and IT equipment. They are called capital expenses and these expenses qualify for capital allowance relief.
Other forms of capital expenses include:
- Office rent
- Building insurance
- Heating costs
- Usual repair and maintenance works
Allowable expenses
Allowable expenses are the expenses that help keep your business running. You can claim relief on those allowable expenses.
Staff costs
This type of expenses includes:
- Wages, salaries of your staff and their pensions, bonuses and other benefits
- The National Insurance Contribution of the employer
- Agency fees – for example; accountant fee, lawyer fee, etc.
Rent and power
- Your business premises rent
- Water supply charges
- Office lighting and heating
- Power
- Office property insurance
- Security
Maintenance
You cannot claim the cost if you are altering, improving, expanding or buying a new property for your business. You can however claim:
- Repair
- Maintenance of equipment and property
Travel
- Vehicle – car or van for business purposes only
- Vehicle maintenance
- RAC membership
- Travel fares – for example, air, train, or bus
- Hotel accommodation on business-related tours
- Meals on business trips – overnights
- Visa
Advertising
- Marketing charges for your business
- Digital media marketing costs
- Phone, internet and mobile phone
- Stationary
There are other deductible expenses that you may claim. Just visit GOV.UK for more information. You must know that you can only claim these deductibles if they are strictly related to business purposes. You cannot claim anything used for your personal good. For the deductible payments, make sure you’re consulting professional accountants who know all the conditions inside out.
It is important that you find an industry-specific accountant for your business. You can compare accountants in the UK or in locations near you, let the specialized search features of Accounting Firms help you out. Our search tool allows you to search for the industry-specific accountant near you in just under 30 seconds.