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    Allowable expenses

    What a limited company can usually claim against its profits to reduce Corporation Tax.

    By the Happy Wallets team·Updated June 2026·4 min read

    Common allowable costs

    • Office costs and software subscriptions.
    • Travel for business (not commuting).
    • Staff salaries and pension contributions.
    • Professional fees — accountant, legal.
    • Marketing and website costs.

    Keep records

    Keep receipts and a clean set of books. The test HMRC applies is “wholly and exclusively for business”, so personal costs do not qualify.

    Frequently asked questions

    Can I claim working from home?+
    Yes, within HMRC rules — either a flat rate or a fair proportion of actual costs.
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