5 Limited Company Expenses That Feel totally Deductible (But HMRC Disagrees)
The perks of a limited company are great… until HMRC disagrees with your ‘expenses’ list.
Some costs feel so obviously business-related that it’s a shock when HMRC says no. The reason? Most of them fall into the “dual-purpose” trap — meaning they have both a personal and business element. And once HMRC spots that, the whole claim usually gets blocked.
Here are 5 of the most common culprits:
1. A cappuccino and cake while knuckling down on client work
It feels deductible — you’re working after all! But HMRC classes food and drink as personal living costs, unless you’re genuinely travelling for business outside your normal pattern.
You can claim meals when you’re on an actual business trip, e.g. visiting a client in another city.
2. A new Zara blazer for that big pitch / photoshoot / TEDx talk
Buying clothes just for work feels like a business expense, but HMRC say otherwise. Everyday wardrobe — even “work-only” outfits — aren’t deductible because you could wear them outside work (even if you don’t).
The only exception: less exciting items such as uniforms, protective clothing, or branded kit.
3. A “work trip” that’s really a holiday
You squeeze in a few meetings while away, but if the main reason for the trip was leisure, the flights and hotel aren’t deductible.
You can claim specific business-related extras while you’re there, like taxis to and from meetings.
4. Decorating your home office
That fresh lick of paint and stylish Zoom backdrop may feel essential to your business, but HMRC sees them as home improvements, not business costs.
What you can claim: the essentials to do your work — desks, chair, printer etc.
5. Members’ club fees (like Soho House)
Even if you only use them for co-working or networking, HMRC classes members’ clubs the same way as golf memberships — non-deductible.
Co-working subscriptions like Soho Works or WeWork, where the contract is for office facilities, are allowable.
The Bottom Line
It’s easy to see why these expenses feel like fair game. You’re using them for business, right? YBut HMRC’s stance is strict: if there’s any personal benefit, they’ll block the claim. Your limited company can claim expenses - but sadly not everything makes the cut. It’s best to leave these examples out of your business - a little caution now will save a lot of stress should HMRC ever come knocking!
Have you ever been surprised by what HMRC won’t allow?
If you’d like to feel calmer, clearer, and more confident about your business finances, let’s chat.
