hairycoo - 9:53 am on Feb 2, 2010 (gmt 0)
My business is set up as a limited company. The trouble is my expenses are very low (around 10% of the revenue) which means I pay around 19% of my revenue as corporation tax.
I'm looking at ways to claim more expenses back. I'm currently claiming back the usual: hosting, home office expenses, accountancy fees, domain names, phone calls, my director's salary, coffees when I sit in starbucks with my laptop, etc but this is still low.
My accountant said that if you can sit down with the taxman and argue that a certain expense is for business, then you should claim it back. What I claim back now are without a doubt business expenses. I'm now thinking of trying to claim back as expenses things which could be seen as a gray area.
Take a Nintendo DS console and games. I'm wondering whether I can claim it (or part of its cost) as expense and, if asked, argue that I want to sell it as an affiliate but that I need to review/try it myself first. Has anyone done this? Claimed back cost of products/services that are intended to be reviewed and put up on your website?
My accountant also said that as long as the tax that I pay falls in the bracket the HMRC has for my industry (e.g. in which small web marketing businesses fall on average, I assume), then I should be fine. Trouble is, I have no idea what this bracket is :)