Umbrella or Ltd for gross earnings of 30K

[Xav]

Hello all

First question: Is it worth doing my own books under a LTD company or a respectable umbrella company if i gross a fairly modest £30K.

Second question which is rather daft lol: Can i claim petrol expenses for a sportcar that does 18mpg! I would do only 140 miles commuting per week.

Thanks

[Ardesco]

Petrol expenses are claimed using the flat rates set out by IR (If i remember correctly 40p per mile for first 10,000 then 22p per mile after that, but i'm probably wrong as it's been a while since i looked at it) so it doesn't matter what sort of car you drive.

[oraclesmith]

First question : lots of variation here. For a limited, there are fairly fixed overheads such as accountancy fees which you pay regardless of how much you actually earn. It also depends on your attitude to IR35 - whether you might be in or outside it and whether you want to go for maximum tax avoidance. I would guess it's of minor benefit in your case to go limited, but you should really see an accountant before you decide.

Second question : You should be able to claim back 40p per mile tax free for the first 10,000 miles p.a if you are using your own vehicle for business use. Make sure your insurance is for business use. Make sure you keep visit records as per the HMRC guidance. http://www.hmrc.gov.uk/rates/travel.htm