You can claim for any bank charges where the business incurs them.
These could include:
- Bank charges (e.g. bounced direct debits)
- Slimming World Bank Charges (e.g. bounced direct debits)
- Charges for using Credit Card instead of Debit Card (e.g. some providers charge a % for using a credit card)*
- Overdraft and credit card charges / annual fees*
- Interest on bank loans, overdrafts, credit cards*
- Hire purchase interest (lease cars or vans for business purposes)
- Charges by Credit Card processors for running your business (See the EFT Article for more information)
Limits may be imposed on these charges – you can find out more in document HS222 available from HMRC.
Important – Business Accounts
It is very important to be able to distinguish the different between a Personal Transaction and a Business Transaction. Having all income/outgoings for your business and your personal life can cause confusion, and makes your tax responsibilities even more important.
It is highlight recommended to setup a separate Business Bank Account for the purpose of running your business. This will allow you to understand if your business is making a profit, and see which charges and incomes are related to your incoming business.
Business Bank Accounts however may come with charges. However as a sole trader, you may not need a ‘business’ account, and may be able to use a personal one. Charges do vary, and support may vary also (some Business Accounts come with added features, support, premium contact options, etc) so it is best to shop around.