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How much tax does your
business expense save you?

Enter any business purchase. Instantly see your VAT reclaim + Corporation Tax saving. Works for sole traders and limited companies.

HMRC compliant
2025/26 tax rates
No data stored
Used by 1,000+ UK businesses
Your Expense
£
Check your receipt for the VAT rate charged
Total tax saved on this expense
£0.00
Effective cost: £0.00
You get back 0% in tax savings
Tax Savings Breakdown
VAT Reclaim
HMRC refunds the VAT you paid — next VAT return
£0.00
Corporation Tax Saving
Reduces your taxable profit at year-end
£0.00
Net Amount (ex-VAT)
What the item actually cost before tax
£0.00
HMRC Says
Select a category to see what HMRC allows.

Track all your expenses automatically

PrimeInvo shows your tax savings on every expense, files your VAT to HMRC, and calculates your Corporation Tax — all in one place.

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Free plan includes 5 invoices/month + unlimited expense tracking

How business expenses reduce your UK tax bill

1. VAT Reclaim

If you're VAT registered and paid VAT on a business purchase, HMRC refunds that VAT via your quarterly VAT return. A £120 purchase at 20% VAT = £20 back from HMRC, immediately.

2. Corporation Tax

For Ltd companies, allowable expenses reduce your taxable profit. At the 19% small profits rate, every £100 of expenses saves £19 in Corporation Tax. At 25%, that's £25 saved.

3. Income Tax

For sole traders, allowable expenses reduce your taxable income. The saving depends on your tax band — 20%, 40%, or 45%. Higher earners save more per expense.

What expenses can I claim?

HMRC's golden rule: expenses must be "wholly and exclusively" for your business. Here are the main categories:

Office & Equipment
Computers, software, furniture, stationery
Travel
Fuel, trains, hotels, parking (not commuting)
Premises
Rent, utilities, insurance, £6/week home office
Marketing
Google Ads, website, business cards, SEO
Professional
Accountant, solicitor, memberships, insurance
Training
Courses, books, conferences (existing skills only)
What you CANNOT claim
Client entertainment (meals, events), personal expenses, clothing (unless uniform), HMRC fines, home-to-office commuting, political donations.