Expenses you cannot claim as business expenses

Not all costs can be claimed as business expenses in the UK. HMRC only allows expenses that are incurred wholly and exclusively for business purposes. If a cost is personal or has a mixed use that is not properly apportioned, it cannot be fully claimed.

Common mistakes include claiming personal shopping, everyday meals (unless they are part of a business trip), regular clothing (unless it is a uniform or protective workwear), fines and penalties, and other personal costs paid through a business account. Mixed-use expenses such as mobile phones or internet bills can only be claimed in proportion to the business usage.

Incorrect expense claims can lead to adjustments during HMRC checks and may result in penalties or additional tax liabilities. Keeping clear records and separating personal and business spending is essential to stay compliant and avoid issues with HMRC.