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.

You can view a number of fee-free business bank accounts in our guide, along with suggested providers.