Introduction

For cleaners operating via limited companies, effectively managing expenses and understanding eligible deductions can lead to significant tax savings. This guide offers insight into which expenses you can deduct and how to plan for the end of the tax year.

 

Deductible Expenses for Cleaning Businesses

Q: What expenses can I claim as tax deductions for my cleaning business?

A: A wide range of expenses are deductible for cleaning businesses, including:

• Cleaning supplies and materials such as chemicals, cloths, and equipment.
• Travel expenses for moving between cleaning sites, including vehicle costs or public transport fares.
• Uniforms and protective wear that are necessary for your work and branded with the company logo.
• Marketing and advertising costs, including flyers, digital ads, and business cards.

 

Pension Contributions and Tax Savings

Q: How can making pension contributions help reduce my company’s tax bill?

A: Contributions made by your company to pension schemes can be treated as allowable business expenses. These reduce the corporation tax by lowering the company’s profit before tax. Always ensure that contributions are justifiable as per HMRC guidelines.

 

Equipment and Vehicle Expenses

Q: How do equipment and vehicle expenses reduce my tax liability?

A: Purchasing equipment or a vehicle specifically for cleaning purposes can be deductible. This includes the cost of buying and maintaining equipment such as vacuum cleaners, buffers, and company vehicles. Capital Allowances may be claimed on these larger purchases, spreading the cost over several years for tax purposes.

 

Hiring Staff and Subcontractor Costs

Q: Can I deduct the cost of hiring additional staff or subcontractors?

A: Yes, the wages and salaries paid to employees or payments made to subcontractors are fully deductible as long as they are solely for business purposes and properly documented.

 

Eco-Friendly Deductions

Q: Are there any special deductions available for eco-friendly practices?

A: If you invest in eco-friendly cleaning products or equipment that reduces environmental impact, you may be eligible for specific grants or tax reliefs aimed at promoting sustainable practices in businesses.

 

Managing Home Office Expenses

Q: How can I handle home office expenses if I manage my cleaning business from home?

A: If you use part of your home to manage your business, such as for administrative work or storing cleaning supplies, you can claim a proportion of your home expenses. This includes a portion of rent, utilities, and internet costs, based on the percentage of the home used for business.

 

Tax Filing and Planning Deadlines

Q: What are the important deadlines for tax filing and planning I should be aware of?

A: Keep in mind that your company tax return must be filed 12 months after the end of your company’s financial year. Corporation tax payments are due nine months and one day after the end of the financial period. Timely planning can help you maximise your deductions and reduce tax liability.

 

Seeking Professional Tax Advice

Q: Should I seek professional advice for tax planning?

A: Navigating tax deductions can be complex, especially when considering specific expenses or investments. Consulting with a tax professional can ensure you claim all eligible deductions and remain compliant with tax regulations.

 

Conclusion

Effective management of deductible expenses can lead to significant tax savings for cleaners operating through limited companies. Understanding what you can claim, keeping meticulous records, and consulting with professionals can optimise your financial outcomes and ensure compliance with tax laws.

For any further queries, please don’t hesitate to reach out via our Client Services email. We’re here to help!

 

About Neame & Co 

At Neame & Co we specialise in stress free company filing: the easy way to file your year end Company Accounts and Corporate Tax Return to Companies House and HMRC. Maximise tax efficiency, real human support throughout and 100% online and paperless service. Visit Neame & Co for more details on how we can help!