What expenses can I put through my company
What Expenses Can I Put Through My Limited Company?
A Practical Guide for Creative & Marketing Agency Founders
One of the first questions creative founders ask when setting up a limited company is:
“What expenses can I actually put through my business?”
It's a good question - and the right one to ask early on. Getting this right helps you reduce your tax bill, stay compliant with HMRC, and avoid unexpected personal charges later.
This guide breaks it all down - from everyday allowable expenses and tax-efficient perks to the grey areas like health benefits, hybrid travel, and director costs. If you’re running a creative or marketing agency, this will help you make confident, compliant decisions.
Allowable Business Expenses: The Basics
Let’s start with HMRC’s golden rule:
If it’s “wholly and exclusively” for the business, your company can pay - and claim tax relief.
For most agencies, this includes:
Laptops, tablets, cameras, or phones used for client work
Marketing costs like branding, web design, ads, or printing
Travel to client meetings, supplier visits, or events
Business meals when travelling
Software subscriptions and project tools
Professional services (accountants, lawyers, insurers)
Business broadband or phone (if contracts are in the company name)
If the expense is part of how you deliver your work or run the business, it’s likely allowable.
Expenses That Founders Often Miss
There are some lesser-known costs that are fully legitimate - but many new directors overlook them:
Home office costs - You can claim a flat £6/week, or calculate a fair proportion of your actual bills if you regularly work from home.
Training & CPD - Courses and events must relate to your current role or sector.
Software & memberships - From design tools to industry subscriptions, these count if you actively use them.
Client entertaining - The company can pay, but it won’t get tax relief.
Staff parties - You can claim up to £150 per person, per year, tax-free.
Trivial benefits - Up to £50 per item, up to £300/year for directors. Can be shop gift vouchers or other small items purchased for personal milestones (eg Birthday, Christmas etc). Must not be exchangeable for cash. These must be bought directly from the Company, and not be reimbursed later.
Smart Director Expenses and Tax Strategies
Some of the most valuable tax wins come from planning director-related costs carefully:
Director’s loan interest If you’ve lent money to the business, the company can pay you interest - and claim it as a business expense. Depending on your income, it may be tax-free for you under the savings allowance.
Renting your home office to the business You can charge rent with a formal agreement. This must reflect actual business use. You’ll declare this as property income but can offset a share of costs like mortgage interest or utilities.
Company pensions The company can pay into your pension directly it’s corporation tax deductible and doesn’t trigger personal income tax or NIC. One of the most tax-efficient ways to extract profit.
Cycle to work A limited company can buy a bicycle or e-bike for you under salary sacrifice. Must be primarily for commuting or work-related travel.
Health & Wellbeing: What’s Tax-Free?
Looking after yourself is smart business - but the tax rules vary.
Tax-free:
Eye tests (if you use screens)
Glasses for VDU use only
One annual health check, offered to all staff
Possibly tax-free:
Counselling services (e.g. stress, bereavement), if available to all employees
Taxable (reportable on a P11D):
Private health insurance
Gym memberships (unless it’s a shared company facility)
Medical treatment (unless work-related recovery)
These costs may still be deductible for the company, but you’ll pay personal tax and the company pays Class 1A National Insurance.
Travel Expenses: What’s Allowed vs What’s Risky
Travel is one of the most common - and most misunderstood - areas for directors.
Fully allowable:
Travel to temporary workplaces or meetings
Conferences, networking events, and workshops
Flights, trains, hotels, taxis, and meals while away
Mileage in your own car:
45p per mile for the first 10,000 business miles, then 25p after that - covers fuel, wear, insurance.
Part business, part personal?
If you're adding holiday days or bringing family, you must split the costs. The business portion is still claimable, but your personal share must be paid back to the company.
Not allowed:
Your daily commute
Trips that are primarily personal with business elements added on
Common Misconceptions
There’s a difference between what your company can pay for - and what’s tax-efficient.
Client entertaining - Company can pay, but no tax relief.
Gym memberships or club fees - Usually a benefit-in-kind with personal tax + employer NIC.
Company car - Taxable benefit-in-kind even for electric vehicles (though rates are low).
Soho House, golf clubs, private boxes - Hard to justify unless business use is clear, documented, and regular.
If it looks like a perk, HMRC will treat it like one - unless you’ve clearly documented otherwise.
FAQs: What Can I Claim Through My Limited Company?
Can I claim food and coffee as a business expense?
Yes, if you’re travelling for business or working away from your usual place. Day-to-day coffees near your home office usually don’t qualify.
Can I buy a phone or laptop through my company?
Yes, if it’s used mainly for business and the purchase is made by the company. HMRC generally allow one mobile phone per employee/director to be paid by the business.
Can my company pay for rent or mortgage?
Not directly. But you can rent part of your home to the company with a proper agreement, and claim related expenses proportionally. It may be simpler to just claim the HMRC approved £6 per week use of home as office allowance.
Can I put personal expenses through the company and just reimburse them later?
Yes - as long as it's a business expense, the company can reimburse you. Keep good records.
Final Word: Claim What You’re Entitled To - Without Overstepping
The aim isn’t to squeeze every penny through the company - it’s to run your agency efficiently, claim what’s fair, and avoid penalties.
If an expense is clearly business-related, you can claim it with confidence. If it’s mixed use, be reasonable and document it. And if it’s a perk, weigh the pros and cons before running it through the company.
The key is knowing the rules and using them well. That way, you stay compliant, make better decisions, and don’t pay more tax than you need to.
Want help setting up a smarter, tax-efficient system?
As a financial coach for creative and marketing agency founders, I’ll help you:
Know what to claim
Set up clean systems
Avoid HMRC surprises
And make strategic financial decisions
to chat through your plans.
Book a discovery call or email [email protected]
