Cardens A-Z Guide of Business Expenses You Can Claim: B is for…
BANK INTEREST & OVERDRAFT CHARGES
Business accounts
If your company has a business bank account in its own name, it can claim tax relief on the interest payments and charges.
Personal accounts
Interest and charges on a personal bank account or credit card are not allowable for tax and shouldn’t be included in the company’s accounts. However if you are registered as Self-Employed and you use a personal account for your business banking, then how much interest and charges you can claim tax relief on will depend on how much you use the account for business. If the business use of the account is minimal, then you shouldn’t claim any tax relief on these costs, but if you use the account mainly for business, then it’s worth including at least some of these costs and always be prepared to discuss this with a visiting HMRC inspector.
BROADBAND
If you work from home and don’t have a separate broadband contract for your business, you can claim the full cost of all of your business use of your
home broadband (using an itemised bill), and a percentage of the line rental. If you pay a Fixed fee for your broadband, you should claim the business percentage of your usage of broadband.
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