❌ Difference #3
Tax-deductible Expenses: check before you spend

1. 🔎 Never rely solely on hearsay

Tax rules change every year through the Finance Act:

• Thresholds, percentages, conditions of application…
• What was valid in 2022 may no longer be valid in 2028.

💡 Before making a binding decision, ask for a reliable source, or even an extract from the tax legislation or an official ruling. You can ask your accountant… or the trade association for your sector.

2. 🚗 Buying a car: a classic scenario… often poorly planned

“It’s for the business. So I’ll claim it as an expense, won’t I?”

In reality:

• You’ll pay the full price for the vehicle (including VAT),
• You won’t reclaim the VAT on the purchase (barring very specific exceptions),
• And the corporation tax deduction is capped, or even completely excluded for certain models (passenger cars).

The result:

• Reduced cash flow,
• Virtually no tax benefit,
• And an asset to manage in the accounts.

3. 💻 Don’t panic about IT equipment

Good news: for PCs, printers or software:

• 📆 The depreciation period is often short (1 to 3 years),
• 📉 Software is now available on a monthly subscription basis, so it’s 100% tax-deductible each month.

💡 All you need to do is organise your subscription management properly so you don’t forget anything.

4. 🧾 A lease? Have it reviewed by a specialist solicitor

A poorly drafted commercial or business lease can expose your company to contractual pitfalls:

• Vague or unfair clauses,
• Potential for excessive rent increases,
• Complicated lease termination…

💡 Have your lease reviewed by a business lawyer,
preferably one recommended by your chartered accountant (who often has a preferential rate).
The investment is minimal… for a major legal risk avoided.

5. 📞 Consult your chartered accountant… well in advance of the project

A chartered accountant isn’t a hotline you call in an emergency just before signing. They’re often already in a meeting… with the business owner who, for their part, has planned ahead for this call.

💡 Discuss your project with them well in advance.

This will give them time to:

• Check the latest tax legislation,
• Do their research,
• Take a strategic look at your situation.

And remember: A good chartered accountant doesn’t know everything, all the time. But they know how to research, understand, and guide you.

6.🤝 Don’t limit yourself to your accountant: build a smart support network

Sometimes, the best advice doesn’t come from your firm, but from your peers.

💡 Join a professional association:

• Legal and tax updates,
• Trade fairs,
• Networking with other business leaders,
• Specialist partners (banks, insurance, pensions, etc.).

No association in your sector?

Turn to your local CPME (Confédération des Petites et Moyennes Entreprises), which often offers a strong and supportive network.