Discussion
Hello All,
Hope everyone is doing well?
I have just set-up my own Ltd company. I will be trading as a business/management consultant, focusing predominately in Marketing & IT.
I have already got my first project which will run for 4-6 weeks.
What expenses can be off set against my profit.
So far I have a home office and travel into London 3 times a week.
Am I correct in off-setting:
1. Rail travel
2. New printer that I need to purchase
3. Some of my home/mobile phone bill
Can I put any other expenses against my profit:
1. Lunch
2. Drinks with clients after work
Anything else…help much appreciate. This is the first time I have gone freelance.
IceBoy
Hope everyone is doing well?
I have just set-up my own Ltd company. I will be trading as a business/management consultant, focusing predominately in Marketing & IT.
I have already got my first project which will run for 4-6 weeks.
What expenses can be off set against my profit.
So far I have a home office and travel into London 3 times a week.
Am I correct in off-setting:
1. Rail travel
2. New printer that I need to purchase
3. Some of my home/mobile phone bill
Can I put any other expenses against my profit:
1. Lunch
2. Drinks with clients after work
Anything else…help much appreciate. This is the first time I have gone freelance.
IceBoy
As you are operating through a limited company, get yourself sorted out with an accountant without delay.
You need to ensure you are doing everything correctly from the outset. Trying to sort matters out in arrears is very difficult and could be expensive.
You MUST rememebr that company is a separate legal entity to you as a person. Therefore, if you use the company cheque book or bank account to pay for bills that would normally be payable by you personally, you are walking into a tax trap that you need to be aware of. Howrever, if you keep the right records, fill in the correct forms and notify the Revenue in the correct way and submit the necessary paperwork by the legal deadline dates, you should ensure that you do not inadvertantly rub the Revenue the wrong way.
Regrading your specific questions
1. Rail travel
- from where to where?
- what is your base of operations?
- would this be considered your normal commute?
2. New printer that I need to purchase
- that is a capital cost but will be eligible for 100% Capital ALlowances under new rules introduced this April
3. Some of my home/mobile phone bill
- the best thing is to pay them personally and then make a seprate claim from the company for the specific business related calls.
Can I put any other expenses against my profit?
Any expenses incurred wholly and exclusively BY THE COMPANY for the purpose of the trading activity of the company are allowed for tax purposes
1. Lunch - subsistence costs are allowed
2. Drinks with clients after work - NO, "Enterytaining" as a cost is specifically NOT allowed by the Revenue.
As a matter of interest, have you are do you plan to set the company up for PAYE?
Have you decided how and when you plan to remunerate yourself from the company?
Will the company need to register for VAT?
You need to ensure you are doing everything correctly from the outset. Trying to sort matters out in arrears is very difficult and could be expensive.
You MUST rememebr that company is a separate legal entity to you as a person. Therefore, if you use the company cheque book or bank account to pay for bills that would normally be payable by you personally, you are walking into a tax trap that you need to be aware of. Howrever, if you keep the right records, fill in the correct forms and notify the Revenue in the correct way and submit the necessary paperwork by the legal deadline dates, you should ensure that you do not inadvertantly rub the Revenue the wrong way.
Regrading your specific questions
1. Rail travel
- from where to where?
- what is your base of operations?
- would this be considered your normal commute?
2. New printer that I need to purchase
- that is a capital cost but will be eligible for 100% Capital ALlowances under new rules introduced this April
3. Some of my home/mobile phone bill
- the best thing is to pay them personally and then make a seprate claim from the company for the specific business related calls.
Can I put any other expenses against my profit?
Any expenses incurred wholly and exclusively BY THE COMPANY for the purpose of the trading activity of the company are allowed for tax purposes
1. Lunch - subsistence costs are allowed
2. Drinks with clients after work - NO, "Enterytaining" as a cost is specifically NOT allowed by the Revenue.
As a matter of interest, have you are do you plan to set the company up for PAYE?
Have you decided how and when you plan to remunerate yourself from the company?
Will the company need to register for VAT?
I have been looking into this for 6 months now with a view to doing something about it next year, depending on what the daily rates are at the time
I am shocked if you haven't been on http://www.contractoruk.com/ir35/index.html already.
Good luck with the new venture
I am shocked if you haven't been on http://www.contractoruk.com/ir35/index.html already.
Good luck with the new venture
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