Maximise your tax savings by claiming the expenses many small business owners forget.
Many small business owners overlook valuable tax-saving opportunities by failing to claim small business expenses that are rightfully theirs. In this blog, we highlight the 10 most commonly forgotten expenses for small business owners — ensuring you don't miss out on potential savings.
What expenses do small business owners most often forget to claim?
The expenses small business owners most often forget to claim are professional subscriptions, business travel and mileage, office supplies, software and digital tools, marketing costs, business insurance, staff training, computer equipment, office furniture, and loan interest. Each must be incurred wholly and exclusively for the business, per HMRC, to reduce your taxable profit.
| Forgotten expense | Typical example | Why it is missed |
| Professional subscriptions | Trade body membership, industry journals | Treated as personal |
| Business travel and mileage | 55p per mile (first 10,000 miles, per HMRC) | No mileage log kept |
| Software and digital tools | Xero, QuickBooks, cloud storage | Small recurring charges |
| Business insurance | Professional indemnity, public liability | Paid annually, then forgotten |
| Loan and overdraft interest | Interest on a business loan | Only the capital is tracked |
The Importance of Claiming All Allowable Expenses
Business owners often miss out on legitimate tax savings simply because they don’t realise certain costs are deductible. By understanding which expenses you can claim, you reduce your taxable profits and save money.
10 Commonly Forgotten Expenses Small Business Owners Can Claim
1. Professional Subscriptions
Professional memberships, certifications, and subscriptions to business-related publications are all legitimate expenses. They enhance your skills or knowledge, which directly benefit your business.
Example:
A subscription to an accounting software service or a marketing membership.
2. Business-Related Travel Expenses
Travel to client meetings, business trips, and even train fares are allowable expenses. Many businesses miss out on claiming mileage, hotel stays, and meals when they should be deducted. For your own vehicle you can claim HMRC's approved mileage rate of 55p per mile for the first 10,000 business miles and 25p thereafter (see the HMRC mileage rates).
Example:
Claiming parking fees during client meetings or travel fares to a business seminar.
3. Office Supplies and Stationery
While stationery is a basic expense, many small business owners forget to include the cost of ink cartridges, printer paper, pens, and other office supplies as part of their tax claims.
Example:
Keep receipts for pens, paper, and printer ink to claim as business expenses.
4. Software and Digital Tools
From accounting software like QuickBooks or Xero to productivity tools like Slack or Trello, digital tools you pay for as a business are fully deductible. Many business owners overlook these recurring costs.
Tip:
Don’t forget subscription-based services like cloud storage (Google Drive, Dropbox) and project management tools.
5. Marketing and Advertising Costs
Expenses related to marketing your business are completely deductible, including online ads, social media promotions, and traditional advertising like print ads.
Example:
Google Ads, Facebook Ads, or the cost of creating promotional brochures.
6. Business Insurance
Professional indemnity, public liability, and employer’s liability insurance premiums are tax-deductible. Many owners forget to track their insurance payments, leading to missed claims.
Example:
If you’re an accountant, your professional indemnity insurance is a valid expense.
7. Staff Training and Development
Training courses for you and your employees that enhance the skills related to your business are deductible. This can include workshops, online courses, or even coaching sessions for improving leadership skills. The rules can be nuanced by trade — for example, see whether hairdresser training is tax deductible.
Tip:
It’s important to track every course or seminar attended.
8. Computer Equipment and Technology
Tech like computers, laptops, monitors, and business-related software can be claimed. Even a printer bought specifically for business purposes is deductible.
Example:
Claiming capital allowances for a new laptop purchased for business use.
9. Office Furniture
Furniture, such as desks, chairs, filing cabinets, and storage shelves, are all allowable expenses if they are used for the business.
Tip:
Make sure to track these purchases with receipts and retain them for your year-end tax submission.
10. Business Loans and Interest Payments
Interest on loans taken out for business purposes can be deducted as an expense. This includes any business credit card interest or loans used for expansion.
Example:
Deduct the interest on a business loan or an overdraft facility used for the company.
How to Maximise Your Claims and Save More Tax
The key to maximising your allowable expenses is tracking everything accurately. Use accounting software to track, categorise, and file your receipts digitally. It’s important to set aside a portion of your income for expenses, rather than mixing it with your personal finances. For the method, read how to track business expenses accurately, avoid the top expense tracking mistakes small business owners make, and if you run a company see allowable expenses for limited companies.
Mistakes to Avoid When Claiming Expenses
- Failing to keep proper records of your receipts
- Mixing personal and business expenses in the same account
- Forgetting to claim recurring subscriptions and memberships
- Overestimating non-business expenses as business-related
Not claiming travel and mileage claims regularly
FAQs
1. Can I claim business expenses even if I’m working from home?
Yes, home office costs are claimable. You can claim a portion of your rent, utilities, and internet if you use them for work.
2. What kind of software can I claim for my business?
Any software that is used exclusively for business activities, such as accounting software, project management tools, or design software, is deductible.
3. Can I claim business meals and entertainment?
Only meals and entertainment directly related to business activities (client meetings, travel) are deductible.
4. Do I need to keep receipts for everything?
Yes, you need to keep receipts for all claimed expenses, whether physical or digital.
