Business Premises Expenses

Posted 06/08/2019

The cost to own and run a separate building premises for a business come with their own sets of costs against the business. These expenses can be claimed against the business profits; this article is a list of the types of premises expenses that include one to two that some people forget about.

Working from home does not entitle the business to claim the full expense of property expenses because it includes personal use within the cost. HMRC’s guidelines that companies can claim £18 per month, or £4 per week, for the use of the home for work purposes. Actual payment figures can be used, and a portion calculated, if there is a significant amount of work carried out from the home, and invoices must be retained to support the calculation. A business owner can choose what rate they use for their annual accounts but they must stick to the one they choose.The bills are of course claimable for business premises. If rent is paid for the use of the premises then the whole of this expense is deductible from profits as an expense. There would also be the electricity, gas and water bills that are wholly allowable for business premises. Bills for the phone lines, the internet and business-only mobile phones are monthly bills that can be included in telephone costs for business expenses.

Insurance costs for the premises are a necessity and are an expense for the business. Often this will be buildings or content insurance but if the business premises are rented out it is ideal to check what exactly is needed. A rented property will have the buildings insurance done by the landlord so the business would only need to cover its assets inside. If the building it owned then both types of insurance will be the business’ duty to update.

Costs around the office, commonly stationery from pens and notepads for meetings to plain and letterheaded paper for the printer, are allowable expenses. These day to day items may be small in comparison to the monthly bills but they do add up, particularly if the business is producing many invoices for customers. With technology becoming a large part of culture any business-related computer software can be put down as business expenses – from document packages to anti-virus protection.

The repairs and maintenance of the premises are claimable, though improvements on the premises would be a capital allowance. Under maintenance would be cleaning costs for the inside of the premises or for the windows. If the cleaners bring their own cleaning equipment then the allowable expense would be just their labour, but any cleaning products purchased by the company can be claimed. If staff members are employed to carry out work for the business then the employer may purchase beverage making facilities and food for the employees, or customers who come in for meetings. If the business does provide these consumables for those within the premises these are considered an allowable business expense.

Tags: Expenses, Use of Home as Office, business premises, business expenses