Can you reclaim missed expenses? Business costs you’ve overlooked could be adding up

Can you reclaim missed expenses? Business costs you’ve overlooked could be adding up
Can you reclaim missed expenses? Business costs you’ve overlooked could be adding up

Business expenses are a key part of reducing your tax bill and yet many owner-managed businesses and company directors miss out on legitimate claims each year. Sometimes it’s simply a matter of not knowing what qualifies. Other times, it’s a result of poor record-keeping, changes in the business, or simple oversight.

In this article, we explain what business expenses are, why they matter, and how to identify whether you’ve missed out on valuable tax relief. We’ll also outline what you can do if you suspect you’ve underclaimed in the past.

What counts as a Business Expense?

HMRC allows you to deduct certain costs from your profits before tax is calculated. These must be “wholly and exclusively” for business use. That means they need to be incurred in the course of running your business — not for personal benefit.

Common allowable expenses include:

  • Office costs (stationery, phone bills, software)
  • Travel expenses (mileage, accommodation, public transport)
  • Staff costs (salaries, pensions, subcontractors)
  • Training, marketing and advertising
  • Professional fees (accountants, solicitors)
  • Business insurance
  • Use of home (if you work from home)
  • Company car and vehicle costs

The rules can vary depending on how your business is setup (sole trader, limited company or partnership..),  and what’s allowable in one structure may not be in another. That’s why regular reviews are so valuable.

Signs you might have missed expense claims

Even with bookkeeping software or a cloud system, things can fall through the cracks. Here are some warning signs to look out for:

  1. You’re relying on memory

If you or your team enter expenses manually from memory, it’s easy to forget small costs such as coffee on a client visit or a taxi between meetings.

  1. No mileage log

Many directors drive for business but don’t maintain a mileage log. This is a common area where claims are missed or underreported.

  1. You’ve paid for business costs personally

It’s not uncommon for directors to use personal cards for business items — especially when working remotely or in a hurry. If those expenses aren’t recorded and reimbursed, they won’t appear in your accounts or your tax return.

  1. Your expense policy is outdated

If your expense policy hasn’t kept up with hybrid working, digital subscriptions, or modern travel arrangements, you may be missing out on claims your business is actually entitled to.

  1. You don’t review your chart of accounts

If your bookkeeping categories are too broad or haven’t been tailored to your business, key items might be miscoded, grouped incorrectly, or missed entirely.

How far back can you reclaim?

If you discover missed expenses, you may be able to amend previous tax returns. Generally, you can go back:

  • 4 years for corporation tax
  • 4 years for personal self-assessment tax returns
  • 6 years for VAT overpayments (if VAT-registered)

However, HMRC expects you to act promptly. If you identify an error, you should declare and correct it as soon as possible. In some cases, this could result in a repayment from HMRC or a reduction in your overall tax liability.

Commonly missed expenses

Here are a few we frequently see when working with clients:

  • Software subscriptions used for planning, design or team collaboration
  • Work-related training courses that build business skills (excluding personal development)
  • Home office costs, especially post-pandemic
  • Client gifts (under £50 and meeting specific criteria)
  • Professional fees, like business association memberships
  • Annual staff events, such as the staff Christmas party (up to £150 per person)

These are small individually, but they add up over time and can make a meaningful difference to your tax position.

Why it matters

Failing to claim eligible expenses means paying more tax than necessary. But it’s not just about tax savings, properly recording expenses gives you a clearer view of your costs, improves cash flow forecasting, and helps demonstrate good financial management.

For directors and owner-managed businesses, it can also have personal finance implications:

  • Are you inadvertently overfunding the business?
  • Are you missing out on reimbursements you’re entitled to?
  • Could you be structured more efficiently?

These are the kinds of questions that regular expense reviews help uncover.

What you can do now

If you’re unsure whether you’ve missed any claims, here’s how to get started:

  1. Review the past 12–24 months of expenses against HMRC’s allowable cost categories.
  2. Compare personal bank/card statements with your business records to spot any unreimbursed business costs.
  3. Update your systems and processes to capture expenses in real time (apps, receipt scanners, automated feeds).
  4. Speak to your accountant or tax adviser they’ll help identify gaps and advise on whether back-claims are possible.

Reclaiming missed expenses isn’t just about clawing back tax, it’s about running your business in a way that’s fair, accurate, and financially smart. If you’re unsure whether you’ve been claiming everything you’re entitled to, it’s worth taking the time to check.

How we can help

At Ward Williams, we regularly help business owners spot opportunities to reclaim missed expenses and structure their bookkeeping to prevent future oversights. Whether you manage everything in-house or need a more hands-on approach, we can provide a review or ongoing support.

Get in touch if you'd like to explore whether you’re missing out on valuable claims and how to fix it. Call us on 01932 830664, email us enquiries@wardwilliams.co.uk or visit www.wardwilliams.co.uk

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