Expense Eligibility Checker — Can You Claim It?
Most business owners either miss legitimate tax deductions or claim expenses HMRC doesn't allow — and both mistakes cost real money. This interactive swipe game tests your knowledge of allowable business expenses against actual HMRC rules for 2026/27.
How to play
20 expenses appear one at a time. For each expense, decide whether it's an allowable business deduction or not. Swipe right (or tap ✓) if it's allowable, swipe left (or tap ✗) if it's not.
After each answer, you'll see the correct ruling with an explanation of the HMRC rule — so you learn as you play.
At the end, you'll get your score plus a breakdown of every expense you got wrong and why.
Understanding Your Results
HMRC's expense rules aren't always intuitive. Many business owners either overclaim (risking an enquiry and penalties) or underclaim (paying more tax than they need to). The difference between "I use this for business" and "HMRC considers this allowable" can be thousands of pounds per year.
The key principle is simple: an expense must be incurred wholly and exclusively for the purpose of the trade. If it has a dual purpose — even partly personal — HMRC may disallow it entirely. Some of the most commonly misunderstood expenses include client entertaining (never allowable), everyday clothing (even if you only wear it for work), and personal meals at your usual workplace.
If you scored below 70%, it's worth reviewing your expense claims with a qualified accountant. The cost of getting it wrong — either in overpaid tax or HMRC penalties — almost always exceeds the cost of professional advice.
Frequently Asked Questions
What does "wholly and exclusively" actually mean?
It means the expense must have been incurred purely for business purposes. If there's any personal benefit — even incidental — HMRC can disallow it. For items with mixed use (like a phone), you can claim the business proportion only.
Why can't I claim client entertaining?
This is one of HMRC's most rigid rules. Even though entertaining a client might generate business, it's specifically excluded from allowable deductions. It doesn't matter if the meal was entirely business-focused — the cost is not deductible for tax purposes.
Can I claim for working from home?
Yes. You can either use HMRC's simplified flat rate (currently £6 per week with no receipts needed) or calculate the actual proportion of household costs attributable to your home office — based on rooms used, time spent working, and relevant bills.
What happens if I claim an expense HMRC later disallows?
If HMRC opens an enquiry and finds disallowed expenses, you'll need to pay the underpaid tax plus interest. If they determine it was careless, a penalty of up to 30% of the underpaid tax may apply. Deliberate errors can incur penalties up to 100%.
Do sole traders and limited companies have the same expense rules?
Mostly, but there are differences. Limited company directors can claim certain benefits (like employer-provided eye tests) that sole traders handle differently. Directors' personal tax return fees aren't a company expense, whereas sole trader tax return fees are allowable against their business profits.
How accurate is this game?
The game is based on HMRC's published rules for the 2026/27 tax year. However, every business situation is different — some expenses have grey areas depending on your specific circumstances. This tool is educational and not a substitute for professional tax advice.
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Test your knowledge with 20 expense items — which ones can you claim?
Not sure about your expenses?
A quick review of your expense claims could save you thousands in overpaid tax — or protect you from a costly HMRC enquiry.
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This tool is for educational purposes only and does not constitute tax advice. HMRC rules may vary based on your specific business circumstances. Always consult a qualified accountant before making tax decisions.
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