![]() If you have a personal phone where a percentage is used for company calls, a portion of the usage for data and call time can be claimed as a company expense. Things like inflated utility bills are fine, but you can’t claim for council take, rent or mortgage payments, as you would have had to pay for these already. If you choose to go with the latter option it is important to remember that you can only claim for expenses that you wouldn’t have occurred if you weren’t working from home. The most common is to claim a flat rate of £18 per month, however another approach is to analyse your bills and calculate how much extra you pay out working from home – these excess amounts can then be reclaimed. Sometimes you might be required to stay overnight, which you can also claim back as a business expense – just don’t go booking a 6 star hotel as HMRC may argue that it isn’t necessary.Ĭlaiming expenses for using your home office tends to work in one of two ways. If you are travelling by train or plane you can claim back the cost of the ticket. Please speak to your accountant before purchasing a ‘company vehicle’ – they can advise on the advantages and disadvantages of using one along with tailored advice. This covers fuel and running cost of your own personal vehicle, and can not be used in conjunction if purchasing a vehicle through the company. If you are using your own car you can claim 45p per mile up to 10,000 miles and get your limited company to reimburse you. Travelling to a different place of work means you’ll be able to claim the cost of travel as an expense. Always speak to your accountant to find out more about expenses if you have any questions. Everyone is different so some of the below may or may not be applicable to you. We have put together a few key limited company expenses that most contractors tend to claim. For more information on FreeAgent click here. ![]() Our Integro Accounting clients benefit from using our recommended software program FreeAgent – this will allow all clients to scan in their receipts and keep copies digitally. HMRC will allow electronic copies of all receipts. However, gone are the days where an old shoe box needs to be kept with the paper receipts. ![]() We always recommend our clients keep a copy of every company expense they claim through the company. Do I need to keep a copy of my company expenses? Therefore, it is essential that you claim all the legitimate expenses that you can – nobody wants to pay more tax than they need. You only pay tax on your profits, so by incurring more expenses you will lower your profits and the tax that you must pay. You can claim the business proportion of the laptop as an expense – so £750 in this instance. Let’s say for arguments sake that you use the laptop for 75% work and 25% for personal and it cost you £1,000. For example, perhaps you are an IT contractor and you need a laptop for work, but you’ll also use it for personal activities from time to time. It is possible to claim for expenses that are dual purpose. What is a company expense in the eyes of HMRC?įor an expense to be claimed under your limited company, it needs to be ‘wholly, exclusively and necessary’ for business purposes – so unfortunately you won’t be able to put your weekly food shop through the business! What information do you need to submit to your accountant?Īs a Limited company contractor you are able to claim for a wider range of expenses than standard self-employed sole traders and this guide will breakdown what you can and cannot claim as a company expense in the eyes of HMRC.How to identify a Managed Service Company (MSC).Cyber Hacking – Keeping Contractors Safe.How do dividends work for a contractor?.A Simple Guide to Making Tax Digital (MTD).IR35 private sector roll out: How should I Contract?.What can a contractor claim through their company?.Why do I need to have a Business Bank Account?.Freelancer, Sole Trader or your own Limited company?.Easy Switch Accountancy and Payroll Package.
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