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Starting up:
Business expenses

Corporation tax is charged on the profit of the company, after deduction of "allowable" revenue expenses.
Typical expenses include:

Purchases of goods for sale by your business
Rent and rates
Employee costs
Telephone
Light and heat
Motor and travel expenses
Administrative expenses such as postage and stationery
Accountancy fees
Bank charges and interest
Hire purchase interest

Even where an expense, such as telephone or motor expenses, includes an element of private use, the full cost of the expense is still allowed in the company. However, you will be taxed personally on the benefit you have received from the company. This issue is discussed further in the section headed What are benefits in kind?.

A company does not get any tax relief on certain expenses such as business entertaining or fines.

Expenses that might be classed as capital costs rather than revenue expenses include:

repairs and renewals (for example, if the expense represents the cost of a new asset)
legal and professional fees (for example the legal costs of acquiring a property are classed as capital)

Tax relief for capital costs is not available when the expense is incurred. Read more in the section headed Tax relief on company assets.