Five examples of business expense

"What can I include as a business expense?"

This is one of my most discussed topics with new business owners and solo founders.

Let's go through five examples:

1. Advertising on social media, including boosting your posts: this is a form of digital marketing!
2. Using consultants or outsourcing work: if you use an expert to improve or operate an element of your business, you can deduct this as a business expense.
3. Merchandise costs: if you have merchandise for marketing purposes or to sell, any related costs can be deducted.
4. Software subscriptions: this can include, for example, website hosting or cloud storage used in your business.
5. Stationery: make sure you expense any pens, paper, envelopes and so on that you use.

The hard and fast rule is that the purchase is necessary for or contributes towards the running on your business. When in doubt, consider whether it was purchased for your personal benefit or the business'!

There are additional rules when something is used both in your business and for personal use, and different rules for Limited companies vs sole traders, so get in touch with an accountant for specific advice.