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25th November 2020
The short answer to this is yes. The HMRC allows companies to claim a tax deduction for some fees that your accountant charges.
However, please bear in mind that due to the nature of accountants work, not all charges can be tax deductible.
Accountants offer a wide range of services to businesses, with most if not all businesses receiving help to complete company accounts and financial statements.
Accountants can help to set up companies, provide advice on the best legal structure, prepare business accounts. To reduce the dreaded annual tax bill what services such as the ones listed can a company actually claim against?
First things first when looking into whether or not the bill from your accountants is tax deductible, you need to ask yourself whether the cost for a specific service from an accountant was ‘wholly and exclusively’ incurred for trading purposes of your business.
This is one of the areas that the HMRC takes into consideration when decided whether or not corporation tax can be reduced for particular accounting services.
Below we have looked into the typical accounting services that businesses often receive and whether they can be claimed against.
The above are the typical services that most businesses opt for when hiring an accountant. Below are other expenses that unfortunately can’t be claimed against:
You’ve properly reached this section of the blog thinking, “great the only thing I can claim against is a company tax return”. Whilst this may be true for accounting services there are many other business expenses you can claim against including:
The list goes on and on…
Now, we may be biased as we are accountants, so of course we are going to say yes. However, head on over to our case studies page and have a read of what we have done for clients. See for yourself whether we are worth it or not… we are sounding like a loreal ad! Sorry!
When starting up and running a business, there are so many things that you have to do on a daily, weekly and monthly basis. Why not leave the boring admin side like updating your information with the HMRC, filing tax returns, completing company accounts, working out expenses etc. to an accountant? This frees you on doing the more exciting and rewarding things for your business, such as focusing on growing it, making sure customers receive the best service etc.
The team at RDG Accounting have many years of experience when it comes to this sort of stuff, they’ve seen it all, came up against challenges and worked with a range of different businesses. You are in very safe and capable hands!
Bit of a formal way to end a blog with a conclusion. However, it’s always good to conclude what has been said and that is as a general rule of thumb, for businesses and claiming against corporation tax, if the cost was incurred because of the companies trading activity it can be included.
If unsure, always ask a helpful and friendly accountant, such as us! As we would be more than happy to answer any questions on this.
Whether you have just started a business, been trading for a while, or are coming up to your first year it’s always good to seek professional advice and guidance.
Having a chat with us won’t cost you a thing nor will you be tied into taking any of our services. Just use us for peace of mind or a friendly face who you can turn to if you need advice.
Simply fill in the form below and we will be in touch, alternatively call us on 0333 200 0714.
Let us take care of your payroll so you can look after more important parts of your business.
Having an efficient payroll service is a key part of all successful businesses, and you can relax knowing that your employees are paid correctly, on time and that your business complies with all HMRC regulations and requirements.
As part of our payroll service, we will take care of any staff who have been furloughed, meaning another job you don’t have to worry about. We are keeping up to date with the latest government schemes and funding available, so we can make sure clients are getting the financial support they need to survive.
have you read our previous post?