Tax and expenses Tax and expenses
Posts 1 to 6 of 6
  1. #1

    JJ

    Guest

    Default Tax and expenses

    I've just started my first contract and it (of course) is caught by IR35. In an introductory meeting with an accountant I was advised to take all the salary I earn and pay tax under PAYE. He also said I could deduct 5% for expenses before deducting tax and NI. On my monthly paye do I just take the agency payment remove 5% then take off the employers and employees NI then the tax ? And if I take all the earnings in salary under PAYE do I claim for other expenses at the end of the tax year and ask for a rebate ?

  2. #2

    freshblue

    Guest

    Default Eek

    Your accountant should be helping you with this surely?

    Basic calc is I think

    Gross Earnings less
    expenses
    Gross for Tax/NI
    Nett
    Add Expenses back

    or summat like that

  3. #3

    Debbie Reinvented

    Guest

    Default Re: Eek

    but why assume you have to take it all under PAYE.

    Has your accountant advised you on IR35 / looked at your contract etc?

  4. #4

    www 1staccountancy biz

    Guest

    Default Re: Eek

    Debbie is quite correct....is your accountant an IT contractor specialist that can read your contract?

  5. #5

    xoggoth

    Guest

    Default Re: Eek

    You can deduct any expenses that employees can also claim if they were travelling to a temporary place of work. You will find the calculation if you search the IR site.

  6. #6

    Vetran

    Guest

    Default Re: Eek

    Get contract appraised - talk to an IR35 specialist. if not sure do the deemed payment not PAYE, that way you can claim it back if you find out you are clear of IR35.

    get proper professional advice, very few accountants know anything about IR35.

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