When the economy is doing well, it’s easy to become too relaxed and spend too much money. Overhead costs like rent, salaries, and travel costs can become bloated as managers ride the wave of prosperity.[continue reading…]
Business mileage is the most significant single expense type for companies in the UK. It’s estimated that over 2 million employees make mileage claims annually, driving more than 10 billion business miles every year in the UK alone.
Small business owners often make the mistake of believing HMRC only investigate the tax records of big players. Wrong. Last year HMRC were seen to be cracking down on tax avoidance and increased its investigations into smaller firms.
You are bound to incur a variety of travel-related costs as a limited company owner. Most of these costs can be paid by or claimed back from, your company.
If you have to travel to a temporary place of work for business purposes, you can usually claim back the costs of travel. However, the 24-month rule exists to prevent travel reimbursements when HMRC deems a workplace to no longer be ‘temporary’ in nature.