28 January 2024

Optimising Tax Benefits: A Guide to Claimable Expenses for SMEs

For small and medium sized business operations (SMEs), understanding which expenses can be claimed for tax purposes is crucial for financial efficiency and reducing overall tax liabilities. Mariske Byrnes of BM Connect highlights the key areas where SMEs can claim expenses, providing a straightforward guide to optimise tax benefits and support business growth.

Essential Claimable Business Expenses

Business Travel Mileage: SMEs can reimburse employees for business-related travel. The HMRC sets specific Mileage Allowance Payments (MAPs) rates, allowing businesses to compensate employees tax-free up to an approved amount. It’s important to keep accurate records for tax purposes.

Home Office Equipment: For businesses that require office supplies and equipment, expenses such as communication bills, stationery, and software are claimable. Larger items can be classified as company assets in limited companies, providing tax advantages.

Clothing and Entertainment: Claims can be made for necessary work-related clothing and staff entertainment costs, provided they adhere to HMRC guidelines.

Rent and Utility Bills: Businesses operating from a home office can claim a portion of their rent, mortgage, and utilities, based on the percentage of their home used for business. Businesses with external premises can deduct all related occupancy expenses. Although be warned, this can adversely affect the principle private residence CGT exemption on a sale.

Training Courses: Expenditures on training that enhances business operations are deductible. However, costs for courses aimed at starting or expanding the business are not eligible.

Marketing and Subscriptions: Expenses related to advertising, website maintenance, and professional subscriptions that directly benefit the business are deductible. However, client entertainment and non-business-related memberships cannot be claimed.

Capital Allowances: Capital expenditures on items like machinery and fixtures can often be claimed as capital allowances, offering a way to recuperate investment costs over time.

Streamlining Business Finances with BM Connect

BM Connect offers a comprehensive suite of services designed to streamline financial management for SMEs. By providing integrated, flexible, and cost-effective solutions for accounting, payroll, and management reporting, BM Connect ensures businesses can focus on growth while maintaining financial compliance and efficiency.

Our approach is to offer tiered services that match the diverse needs and budgets of SMEs. This enables business owners to select the most appropriate level of service, ensuring they only pay for what they need. By leveraging advanced technology, BM Connect offers real-time visibility into financial operations, enhancing decision-making and operational efficiency.


For SMEs looking to navigate the complexities of claimable expenses, BM Connect provides not just the tools but also the expertise to ensure that financial management is not a burden but a strategic advantage. Understanding what can be claimed, from travel mileage to home office expenses, is just the beginning. With BM Connect’s support, businesses can optimise their tax benefits, reduce liabilities, and focus on what they do best: growing their business.

The landscape of claimable business expenses offers numerous opportunities for SMEs to enhance their financial efficiency. With the guidance of BM Connect, navigating these opportunities becomes less daunting, enabling businesses to leverage tax benefits effectively and support their growth ambitions.

To find out more, contact Mariske Byrnes, BM Connect: T. +44 (0)20 7549 2940 E. info@bmconnect.co.uk.

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