A question about claiming expenses within a limited company

[cerberas]

Hi there,

I'm new to contracting, having just started a rolling 3 month contract. My dad offered me to be an employee of his limited company and we were wondering if I am eligible to claim expenses (mainly interested in travel expenses).

Just wondering if being on another person's ltd company rather than your own affects this, any help would be greatly appreciated.

Cheers!

[northernladuk]

Tell your dad to ask his accountant.

[Kenny@MyAccountantFriend]

Yes you could per the expense policy of the company you are employed by.

Along with usual rules such as the 24 month rule.

[cerberas]

Thanks for the replies, his accountant got back to him and turns out it is dependent on the company itself, and in my dad's case it's absolutely fine - I must have worded my question poorly to him first time round as he told me as though it was obvious!

Cheers!

[northernladuk]

You've had an IR35 check on the contract? Rolling three months might mean you might be inside which opens a new can of worms you might need to look in to.

[TheCyclingProgrammer]

You've had an IR35 check on the contract? Rolling three months might mean you might be inside which opens a new can of worms you might need to look in to.

Wouldn't IR35 be irrelevant if OP is only an employee of his Father's company? Isn't OP basically using it as an umbrella?

[ContrataxLtd]

Wouldn't IR35 be irrelevant if OP is only an employee of his Father's company? Isn't OP basically using it as an umbrella?

Correct, if he was just being remunerated by salary then IR35 would be irrelevant assuming he wouldn't have more than 5% of the share capital in his dad's company.

[northernladuk]

Correct, if he was just being remunerated by salary then IR35 would be irrelevant assuming he wouldn't have more than 5% of the share capital in his dad's company.

Which is the can of worms I was alluding to. He needs to get it right to make sure he's using the most efficient manner. If he's outside would being paid as an employee really be the best option?