8th February 2026
UK company directors can claim as allowable expenses under HMRC rules. The golden principle is that expenses must be incurred "wholly and exclusively" for business purposes not personal use.
Directors can claim travel and mileage expenses, such as train fares, bus tickets, mileage allowances for cars, motorcycles, or bicycles, as well as parking and tolls, provided they are for business journeys.
Subsistence costs like meals and accommodation are allowable when travelling away from the normal place of work.
Office and equipment purchases, including computers, laptops, stationery, software, and office furniture, can be claimed if they are used for business purposes.
If a director works from home, they can claim a reasonable proportion of household bills such as electricity, heating, and broadband, based on business use.
Professional costs, including accountancy fees, legal advice, and subscriptions to professional bodies, are allowable if they relate directly to running the business.
Training and development courses can be claimed if they improve skills relevant to the business, but not if they are purely personal.
Business insurance, such as professional indemnity or liability cover, is allowable, whereas personal insurance is not.
Employer pension contributions made on behalf of directors are tax-efficient and reduce corporation tax.
Certain staff and entertainment costs are allowable, such as an annual staff party up to £150 per head and trivial benefits under £50 each, provided they are offered to all staff.
Business mobile phone contracts and broadband can be claimed, but personal use must be minimal or apportioned fairly.
Expenses That Are Not Allowable
Personal travel (commuting from home to office)
Clothing (unless protective or branded uniforms)
Client entertainment (meals, hospitality) — not deductible for corporation tax
Personal lifestyle costs disguised as business expenses