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Legitimate Expenses & PAYE question

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    Legitimate Expenses & PAYE question

    Just a couple of questions guys,

    Question 1
    I just wanted to find out what is legitimate with regards to Expenses.

    Well, I took 2 potential clients(..girls) out for a drinks in a bar/club. Bill came to about £180 (included my cab fare back home at 4am)

    I was wondering if this is a legitimate business expense



    Question2
    I pay myself about £1000 Net monthly and my Mortgage is about £750. there off course the other standard bills (electricity/gas/council....) to pay as well.
    I was wondering if Paying myself this amount is justified or too low


    css_jay99

    #2
    1. Is it fook. I am assuming that these were some tarts you wanted into bed and not "real" clients. The taxi certainly wouldn't count as "entertaining".

    2. About right.

    Comment


      #3
      Originally posted by css_jay99
      Just a couple of questions guys,

      Question 1
      I just wanted to find out what is legitimate with regards to Expenses.

      Well, I took 2 potential clients(..girls) out for a drinks in a bar/club. Bill came to about £180 (included my cab fare back home at 4am)

      I was wondering if this is a legitimate business expense



      Question2
      I pay myself about £1000 Net monthly and my Mortgage is about £750. there off course the other standard bills (electricity/gas/council....) to pay as well.
      I was wondering if Paying myself this amount is justified or too low


      css_jay99
      1. Did you keep reciepts ? and can you back up the claim in front of HMRC that there was no BIK for you persoanlly ? Thought not. - There is however an allowance for a annual company bash £150 per head - your accountant may be able to pass this off for that.

      2. Don't get this question you pay yourslef £1k and your o/hs are about the same ? so what ?
      Cenedl heb iaith, cenedl heb galon

      Comment


        #4
        Originally posted by css_jay99
        Just a couple of questions guys,

        Question 1
        I just wanted to find out what is legitimate with regards to Expenses.

        Well, I took 2 potential clients(..girls) out for a drinks in a bar/club. Bill came to about £180 (included my cab fare back home at 4am)

        I was wondering if this is a legitimate business expense



        Question2
        I pay myself about £1000 Net monthly and my Mortgage is about £750. there off course the other standard bills (electricity/gas/council....) to pay as well.
        I was wondering if Paying myself this amount is justified or too low


        css_jay99
        Question 1: No. YourCo could pay your clients expenses but not your own.

        Question 2: The level of salary is a matter for the directors of YourCo. It has no bearing on your status under Ir35, however a low salary, high dividend may highlight your company as one worth investigating.

        Comment


          #5
          sh*t I put about £200 in Entertainment in last year's accounts !.


          Ahh sod it, dont want to get into trouble with hmrc, I might as well just absorb the cost.

          Them both BI, so looking forward to a next encounter .

          strange how drinks bring out the truth in women!



          Originally posted by zathras
          Question 2: The level of salary is a matter for the directors of YourCo. It has no bearing on your status under Ir35, however a low salary, high dividend may highlight your company as one worth investigating.
          Its a case of Small salary (£12000 pa NET) and high dividend. I thought thats what most people here are doing ?. If so we are all at the same risk

          css_jay99

          Comment


            #6
            Originally posted by css_jay99
            If so we are all at the same risk
            css_jay99
            I would think that those who put their 50" Plasmas and drunken bisexual binges through their expenses can be confident that they are at 'slightly' higher risk.

            Comment


              #7
              Next time find some lady friends who have their own limited company and are VAT registered....I know of a few, well strictly speaking they are BTW registered so I guess it would be the EC 0% rate and thus little benefit if you were on the FRS....

              Comment


                #8
                AFAIK

                1. Your company does not get tax relief on Business Entertaining so as long as it is properly recorded I can't see it being too much of a problem, provided you have receipts.

                2. Does not make a difference. There are others that disagree on this. None of them are accountants.

                Comment


                  #9
                  Originally posted by dejongj
                  Next time find some lady friends who have their own limited company and are VAT registered....I know of a few, well strictly speaking they are BTW registered so I guess it would be the EC 0% rate and thus little benefit if you were on the FRS....

                  err, i am lost. pardon?


                  Originally posted by Gonzo
                  AFAIK
                  1. Your company does not get tax relief on Business Entertaining so as long as it is properly recorded I can't see it being too much of a problem, provided you have receipts.
                  So how come my Sage Accounts is showing Entertainment as a deductable amount b4 arriving at profits b4 Tax ?

                  Comment

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