Do you have expenses if you live soley on Dividends? - Contractor UK Bulletin Board

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

X

Samuel745

Nervous Newbie

Samuel745 has no reputation

Join Date:

Oct 2019

Posts:

3

Thanks (Given):

0

Thanks (Received):

0

Likes (Given):

0

Likes (Received):

0
#1

Do you have expenses if you live soley on Dividends?

31 October 2019, 16:17

I'm transfering from sole trader to LTD company. I will be paying myself dividends/minimum salary. Since I work from home, I don't think I can claim the usual expenses that I would. Example: portion of rent, utilities etc.

Unless I'm mistaken, you cannot claim expenses unless it is completeley business expense for a LTD company.

So when I'm doing my self employed taxes my dividend income, can I input all my usual expenses, as if I was still a sole trader?
Tags: None

Reply With Quote
WTFH

Mod of the year 2024

WTFH has reached the peak. Play again?

Join Date:

Nov 2012

Location:

Devon

Posts:

27789

Thanks (Given):

8,169

Thanks (Received):

4,507

Likes (Given):

10,254

Likes (Received):

17,245
#2

31 October 2019, 16:20

Originally posted by Samuel745 View Post

can I input all my usual expenses, as if I was still a sole trader?

What do you mean by "All my usual expenses"?

…Maybe we ain’t that young anymore
Reply With Quote
Comment
Samuel745

Nervous Newbie

Samuel745 has no reputation

Join Date:

Oct 2019

Posts:

3

Thanks (Given):

0

Thanks (Received):

0

Likes (Given):

0

Likes (Received):

0
#3

31 October 2019, 16:38

Originally posted by WTFH View Post

What do you mean by "All my usual expenses"?

Portion of internet bill/utility bills/website domain expenses - things like that
Reply With Quote
Comment
northernladuk

My post count is Majestic

northernladuk has reached the peak. Play again?

Join Date:

Mar 2009

Posts:

52043

Thanks (Given):

449

Thanks (Received):

3,442

Likes (Given):

3,575

Likes (Received):

13,353
#4

31 October 2019, 16:46

Get yourself an accountant. Sounds like a decent one is going to make you money in the short term.

'CUK forum personality of 2011 - Winner - Yes really!!!!
Reply With Quote
Comment
NotAllThere

Permie Swiss

NotAllThere is always on top

Join Date:

Aug 2007

Location:

Far away from HMRC

Posts:

27592

Thanks (Given):

614

Thanks (Received):

2,319

Likes (Given):

4,433

Likes (Received):

8,337
#5

31 October 2019, 17:16

Originally posted by Samuel745 View Post

Do you have expenses if you live soley on Dividends?

Yes. For details, see an accountant.

Down with racism. Long live miscegenation!
Reply With Quote
Comment
TheCyclingProgrammer

Super poster

TheCyclingProgrammer is NOT a disguised employee

Join Date:

Jan 2009

Location:

Near London, UK

Posts:

4446

Thanks (Given):

55

Thanks (Received):

335

Likes (Given):

304

Likes (Received):

1,048
#6

31 October 2019, 18:20

Originally posted by Samuel745 View Post

Portion of internet bill/utility bills/website domain expenses - things like that

No you can’t. Not directly anyway.

YourCo should pay for most of these costs directly in contracts under its own name if they are wholly and exclusively for business purposes. You and your business are separate entities.

Out of pocket expenses you incur personally in the course of doing your job like travel and subsistence can be claimed back from YourCo.

Bear in mind the rules for a lot of expenses can be different as a director/employee of YourCo compared to being a sole trader. Especially things like travel and use of home.

Get an accountant.
Reply With Quote
Comment
fiisch

More time posting than coding

fiisch is a permanent contractor

Join Date:

Dec 2017

Posts:

300

Thanks (Given):

33

Thanks (Received):

13

Likes (Given):

69

Likes (Received):

78
#7

1 November 2019, 12:39

£18/month for use of a home office.

+1 for an accountant will be best to guide you on this, and definitely worth their monthly fee.
Reply With Quote
Comment

1 to 7 of 7 Previous template Next

Working...

X