What Can I Put Through the Business? A Practical Guide to Business Expenses
“What can I put through the business?”
It’s one of the questions we get asked all the time, and for good reason.
When you’re running a business, you’re constantly spending money on things that help you do the work, serve clients, travel, market the business, buy equipment or simply keep everything ticking over.
Some expenses are very obviously business-related. Others sit in a much greyer area.
Can you claim your mobile phone if you use it personally too?
What about lunch when you’re out working?
What if you buy clothes specifically for client meetings?
Can training be put through the business?
What happens if you accidentally pay for something on your personal card?
This is where the phrase “wholly and exclusively for the purposes of the business” comes in.
In plain English, was the cost genuinely incurred for the business? That’s the starting point, but as with most things in accounting, the detail matters.
A laptop used only for client work is fairly clear.
A mobile phone you use for customers, WhatsApp, family calls and scrolling Instagram at night is less clear.
A train ticket to visit a client is different from your usual journey to work.
Also, lunch doesn’t automatically become a business expense just because you ate it while answering emails.
So rather than give you a vague list of things you may or may not be able to claim, let’s look at some practical examples from different types of businesses.
What does “wholly and exclusively” actually mean?
For an expense to be allowable for tax purposes, it generally needs to have been incurred for the purpose of your trade or business.
That means there needs to be a genuine business reason for the cost.
For example:
A freelance photographer buying memory cards for a wedding shoot has a clear business expense.
A hairdresser buying professional colour products for clients does too.
A consultant paying for Zoom, accounting software or professional indemnity insurance is also paying for things directly connected with running the business.
Where it becomes less straightforward is when something has both a business and personal use.
Can I claim something I also use personally?
If something is used partly for business and partly for personal reasons, you usually can’t just claim the whole cost.
In many cases, only the business proportion can be included. The important thing is being able to show how much of the cost genuinely relates to the business.
For example:
A self-employed electrician uses the same mobile phone for customers and personal calls.
A photographer uses the same car for weddings and family trips.
A consultant works from home and uses the same broadband for client calls and Netflix.
In those situations, you generally need to separate the business use from the personal use rather than simply putting the whole cost through the business.
Can I put my mobile phone through the business?
Phone costs can be allowable where they relate to the business, but the treatment depends on how the phone is used and how your business is set up.
If the phone is used only for work, the position is usually much clearer. If it is also your personal phone, you may need to work out the business proportion.
For example:
A sole trader using one phone for everything may need to identify how much of the bill relates to business use.
A limited company paying for a company phone can be treated differently.
A tradesperson with a separate business handset used only for customers will usually have a clearer business cost.
This is a good example of why the answer to “Can I claim it?” is sometimes “Yes, but…”
Can I put meals through the business?
Food and drink can sometimes be allowable, but it depends on the reason for the cost and whether it is connected with qualifying business travel.
Buying lunch while you happen to be working does not automatically make it a business expense.
For example:
A consultant travelling to another city for a client meeting may be in a different position from someone buying lunch next to their usual office every day.
A photographer working away from their normal base at an event may have qualifying travel and subsistence costs.
A tradesperson buying lunch near the same regular job every day may not be able to treat that in the same way.
Can I claim travel?
Travel costs can be allowable where the journey is genuinely for business purposes.
The key distinction is between business travel and ordinary commuting.
For example:
A photographer travelling to a wedding venue.
A builder travelling between jobs.
A consultant taking the train to meet a client.
An events business travelling to a venue.
A therapist travelling to deliver a workshop somewhere other than their usual workplace.
Normal commuting is treated differently, so it is worth checking how your regular journeys are classified.
What about clothes?
Clothing is one of the areas people often have questions about because buying something specifically for work does not always mean it qualifies as a business expense.
Ordinary clothing is generally still considered personal, even if you mostly wear it for work.
For example:
A suit worn for client meetings is still ordinary clothing.
Shoes or a coat you could also wear outside work are generally personal.
Branded uniforms may qualify.
Protective clothing such as safety boots or specialist workwear may qualify.
Specialist costumes used for performance work may also be treated differently.
The question is whether the item exists specifically for the business rather than for ordinary personal use.
Can I claim equipment?
Equipment bought genuinely for the business will often be allowable in some form, but the way it is treated in the accounts can vary depending on the type and value of the purchase.
Larger items may be dealt with differently from everyday running costs, which is why it is worth checking how they should be recorded.
For example:
A videographer buying a camera, microphone or lighting kit.
A joiner buying tools.
A coach buying a laptop to deliver online sessions.
A beautician buying specialist salon equipment.
A café buying a new commercial coffee machine.
These are all clearly connected with the business, but the accounting treatment may differ.
What about marketing?
Marketing costs are generally easier to identify because they are usually directly connected with promoting the business and attracting customers.
If you are paying for something specifically to advertise, promote or market the business, it may be an allowable cost.
For example:
A café paying for leaflets, menus or local advertising.
A wedding photographer paying for a wedding fair.
A consultant paying for LinkedIn ads or email marketing software.
A fitness instructor paying for social media ads or printed flyers.
An events business paying for promotional banners or exhibition materials.
The clearer the link to promoting the business, the easier it is to identify the business purpose.
Can I put training through the business?
Training can be allowable where it helps you maintain or improve skills you already use in your existing business.
Training for a completely new trade or profession can be treated differently, so the purpose of the course matters.
For example:
A bookkeeper completing training on accounting software.
A personal trainer completing continuing professional development.
A photographer improving an existing technical skill.
A marketer completing training on a platform they already use for client work.
If the training supports the work you already do, the position is usually much clearer than if you are retraining for something completely different.
What if I paid for something using my personal card?
Paying from your personal account does not automatically stop something being a business expense.
What matters is what the money was spent on and whether the cost genuinely relates to the business.
For example:
A florist buys emergency stock using their personal debit card.
A consultant books a train ticket on their personal credit card.
A café owner picks up supplies on the way to work and forgets the business card.
A tradesperson buys materials and accidentally uses their personal account.
If the expense was genuinely for the business, keep the receipt and make sure it is recorded correctly in the accounts.
Keep accurate records
Whatever you are claiming, it helps to keep clear records of what you bought, how much it cost and why it related to the business.
That might include receipts, invoices, mileage records, bank transactions or notes about what a particular cost was for.
Good records make it much easier to keep your bookkeeping accurate and answer questions later if something is unclear.
For example:
A photographer might keep digital copies of equipment invoices and mileage records.
A coach might save receipts for software, insurance, venue hire and travel.
A tradesperson might keep supplier invoices, fuel records and tool receipts.
A café owner might keep stock invoices, supplier bills and equipment receipts.
If a receipt goes missing occasionally, speak to your accountant about what other evidence you have and how the transaction should be recorded.
The easiest question to ask yourself
When you are looking at an expense and wondering whether it belongs in the business, ask:
Would I have spent this money if I didn’t run this business?
It is not a perfect test for every situation, but it is a useful starting point.
If the answer is clearly no, there is probably a business reason for the expense.
If the answer is yes, or partly, then it is worth checking before claiming the full amount.
If you’re not sure, ask.
There are plenty of grey areas when it comes to business expenses.
What a photographer can claim may look very different from what a café owner, consultant, builder or therapist can claim.
If you are looking at a receipt thinking, “Can I put this through the business?”, send us a message or give us a call.
At AFor Accounting, we’d much rather answer the question at the time than try to untangle it months later.