What Little Costs Are You Forgetting To Put Through Your Business?
We all do it, we pay for something with cash or with our own bank card and then forget to put it through the business and claim it back! But we all need to get better at it. So, what are the common ones that we forget about?
1. Meeting a fellow business person for coffee and a catch up - you're talking business, your looking to gain inspiration, hints and tips and to share ideas. It’s a business meeting! Put that coffee and receipt through the business. If you catch up with someone once a month and spend £10 each time that’s £120 over the course of the year.
2. Mileage – when you go somewhere in your car for business then you need to claim the mileage back (on the assumption that it isn’t a company car), you might think it’s just 5 miles here or 10 miles there but if you don’t claim them if you have 10 unclaimed business miles a week that Is £234 over the course of the year.
3. Stamps – unless you are posting bits out daily, we all have that made scrabble to find a stamp when we need to put something in the post and end up using the stamps from home because it is easier than going out to buy some stamps. But if you do this every week with a first-class stamp that is £33.80 that you aren’t putting through.
4. Amazon shopping – ink cartridges, printer paper, pens, batteries for the wireless keyboard/mouse, mouse-mat, notebooks, etc etc. We all pop a quick order online but do we remember that we’ve actually linked that account up with our own bank card rather than the business one and so we’ve paid for it ourselves? Generally not! All these add up – I spend around £500 via online shopping for the business in a year, if I forgot to put them through the business, that’s massive!!
5. Supermarket shop – as above, you pop a pack of envelopes in the trolley when you are in Tesco, a new pack of pens, the post it notes that you need but have somehow disappeared (again). It all adds up, you might think it’s only a few quid here and there but it accumulates – let’s call it £100 over the year because we tend to order it online.
Just in the five examples above, if you have all of these that’s £987.80 of business expenditure you haven’t put through the business which means you’ve paid £187.68 more corporation tax than you needed to or £286.46 more income tax and Class 4 NI that you needed to if you are self employed and a basic rate tax payer!!