Business Expense Categoriser
Free AI business expense categoriser for UK and US businesses. Enter your expenses and get instant categorisation, tax deductibility estimates, and plain-English explanations. Supports UK HMRC allowable expenses and US IRS Schedule C categories. Powered by Gemini AI.
Frequently Asked Questions
What is the difference between allowable and non-allowable expenses?
In the UK, HMRC only allows expenses that are "wholly and exclusively" for business purposes. Personal expenses, client entertainment, and fines are not deductible. In the US, the IRS allows "ordinary and necessary" business expenses. Mixed-use expenses (like a home phone used for both personal and business) are partially deductible based on the business-use percentage.
Can I use this for my tax return?
This tool provides guidance and estimates only. The categorisations and deductibility percentages are based on general tax rules and common scenarios. Your specific situation may differ. Always review the output with an accountant or tax adviser before submitting your tax return.
Does it work for both sole traders and limited companies?
The tool is primarily designed for sole traders (self-employed) and freelancers using UK HMRC self-assessment or US Schedule C. Limited company expenses have different rules, particularly around salary vs dividends, directors loans, and R&D tax credits. For limited company accounting, consult an accountant.
Learn More
Get a free tool tip every week
One practical tip, one featured tool, every Tuesday. Takes 90 seconds to read. No spam, unsubscribe any time.