CT600 for Cleaning Companies: A Complete Tax Guide
Running a limited company cleaning business means filing a company tax return — known as the CT600 — each year with HMRC. Whether you operate a domestic cleaning service, a commercial contract cleaning company, or a specialist deep-cleaning firm, understanding which expenses you can deduct helps keep your corporation tax bill as low as possible.
This guide covers how corporation tax works for cleaning companies, which costs are deductible, and how to handle capital allowances for vans and equipment.
How Corporation Tax Works for Cleaning Businesses
Your limited company pays corporation tax on the profits it earns each accounting period. The rate depends on the level of profit:
- 19% — small profits rate, applies to profits of £50,000 or less
- 25% — main rate, applies to profits over £250,000
- Marginal relief — profits between £50,000 and £250,000 attract a blended rate
Most small and medium-sized cleaning businesses sit comfortably within the small profits band. If your business has grown and profits are approaching the lower threshold, the CT600 Box 450: Marginal Relief guide explains how the calculation works and whether you qualify for relief.
Corporation tax must be paid 9 months and 1 day after your accounting period ends. Your company tax return must be filed within 12 months of the period end.
Allowable Expenses for Cleaning Companies
Deductible expenses reduce your taxable profit. For cleaning businesses, the following costs are typically allowable:
Cleaning Products and Consumables
All products used to carry out cleaning work are deductible:
- Detergents, disinfectants, and surface cleaners
- Bleach, descalers, and specialist treatments
- Cloths, mops, sponges, and disposable wipes
- Refuse sacks and waste disposal materials
- Personal protective equipment (gloves, masks, aprons)
Equipment
Smaller cleaning tools — vacuum cleaners, steam cleaners, pressure washers, floor polishers — are deductible as business expenses. For higher-value equipment, capital allowances may apply (see below).
Replacement parts, repairs, and servicing of equipment are fully deductible as revenue expenditure.
Vehicles
If your company owns a van used for transporting staff and equipment to client sites, the running costs are deductible: fuel, insurance, servicing, road tax, and tyres. The purchase cost of a van is claimed through capital allowances.
Private use: If a company van is available for personal use, a van benefit charge arises under HMRC rules. To avoid this, ensure vans are not used for personal journeys and document this clearly.
Uniforms and Workwear
Branded uniforms, hi-visibility clothing, safety footwear, and protective gear for staff are fully deductible. General clothing — even if worn daily for work — is not deductible unless it is a specific uniform or protective garment.
Staff Costs
Wages, salaries, employer's National Insurance contributions, and employer pension contributions for employees are all deductible. If you use subcontractors, the payments you make to them are deductible provided you hold valid invoices.
Note on subcontractors: Construction cleaning — such as post-build cleans and site cleaning — may fall within the Construction Industry Scheme (CIS). If your clients are contractors in the construction industry, they may be required to withhold tax from payments to your company. Check whether CIS applies to your contracts and ensure you are registered if necessary.
Insurance
Public liability insurance, employers' liability insurance, and any other business insurance premiums are deductible expenses.
Office and Administration
If you have a business premises for administration purposes, the associated costs (rent, utilities, broadband) are deductible. If you work from home and the company is registered at your home address, you may be able to claim a portion of home running costs as a company expense — this requires careful handling to avoid a taxable benefit-in-kind charge for the director.
Professional Fees
Accountancy fees, payroll bureau costs, and any legal fees incurred for business purposes are deductible.
Capital Allowances for Vans and Equipment
Major purchases — vans, ride-on floor polishers, industrial wet-and-dry vacuums, carpet cleaning machines — are claimed through capital allowances rather than as ordinary expenses.
The Annual Investment Allowance (AIA) allows you to deduct the full cost of qualifying plant and machinery in the year of purchase, up to the annual limit. For most cleaning companies, the AIA limit easily covers purchases in a typical year. This is reported in CT600 Box 690: AIA Claimed.
Vans generally qualify for AIA. Cars used by staff or directors qualify for a different rate under the main or special rate pool — the rules are more restrictive for cars, particularly those with higher CO₂ emissions.
The CT600 Box 700: Capital Allowances Pool guide explains how items that exceed the AIA limit, or items that are cars, flow into the writing-down allowance pool and the annual deductions that follow.
Staff and Employment
Cleaning is a labour-intensive business, so getting employment costs right is important.
Payroll: Wages must be processed through PAYE for all employees. Ensure you register as an employer with HMRC and operate payroll correctly, including Real Time Information (RTI) submissions on or before each pay date.
National Living Wage: Cleaning operatives are often paid at or near the National Living Wage. Ensure your payroll reflects the current rate, which is updated annually by the government.
Variable-hours workers: Many cleaning businesses use zero-hours or variable-hours contracts. Workers on these arrangements are still employees for PAYE purposes — the hours are variable, but employment status is not.
Self-employed cleaners: If you engage self-employed individuals, ensure they genuinely operate independently. HMRC scrutinises cleaning businesses that use self-employed models extensively. An incorrectly classified worker can result in backdated PAYE, National Insurance, and penalties.
Accounting Periods and Filing
Your company tax return covers a 12-month accounting period. If your company was recently incorporated, the first accounting period may differ from 12 months.
Cleaning companies typically prepare year-end accounts with the help of an accountant. These accounts are submitted to HMRC in iXBRL format alongside the CT600. For smaller cleaning businesses, micro-entity accounts are usually sufficient and require minimal disclosure, making the filing process straightforward.
Common Mistakes to Avoid
No invoices for subcontractors: If you pay subcontractors but do not hold invoices, HMRC can disallow the deduction. Ensure every subcontractor payment is supported by a proper invoice showing their name, address, and VAT number if they are VAT-registered.
Claiming personal vehicle costs: If a director uses their own vehicle for business journeys, the correct treatment is to pay mileage allowance at HMRC's approved rates — not to put personal fuel bills through the company account.
Missing equipment purchases at year-end: Capital allowances can only be claimed for the period in which the asset was purchased. Review equipment purchases before year-end to ensure nothing has been overlooked.
Not registering for CIS if required: If your business performs construction cleaning and fails to register under CIS, you may face penalties and compliance issues. Check with an accountant if you are unsure whether CIS applies to your contracts.
Late filing: Corporation tax returns must be filed within 12 months of the accounting period end. Automatic penalties apply even if your company has no tax to pay. Filing on time is essential.
Summary
Filing your company tax return as a cleaning business means capturing all legitimate expenses — from products and uniforms to vans and equipment — and reporting accurate profits to HMRC. Keep clear records, maintain separate business bank accounts, and use capital allowances to offset the cost of major equipment purchases. For most cleaning companies, the 19% small profits rate applies, keeping the corporation tax liability manageable.