Just a short story to reinforce the message that others have posted in the past about getting a specialist accountant if you intend to use one.
A good contractor friend of mine has repeatedly ignored my advice that his small-business accountant friend who does his books is a pure-bred idiot who has no clue about the specific circumstances of being a contractor. Based on advice from his accountant he has been:
- continually claiming travel expenses despite being based in the City of London for the last 8 years. His accountant gave him the advice that the clock reset when he changed contract and location wasn't the trigger. His travel expenses to London this year have topped £10k
- continually expensing lunch every day and dinner when he goes out, even at home. His accountant gave him the advice that as long as he paid on the company card that it was a legitimate business expense.
- purchasing goods that are either 100% personal or at least with significant dual-use purposes then claiming in full. His accountant told him that as long as he could show SOME business usage that it would be claimable in full.
He received a notification of audit last week and is sweating a bit now that he's taken further advice.
A good contractor friend of mine has repeatedly ignored my advice that his small-business accountant friend who does his books is a pure-bred idiot who has no clue about the specific circumstances of being a contractor. Based on advice from his accountant he has been:
- continually claiming travel expenses despite being based in the City of London for the last 8 years. His accountant gave him the advice that the clock reset when he changed contract and location wasn't the trigger. His travel expenses to London this year have topped £10k
- continually expensing lunch every day and dinner when he goes out, even at home. His accountant gave him the advice that as long as he paid on the company card that it was a legitimate business expense.
- purchasing goods that are either 100% personal or at least with significant dual-use purposes then claiming in full. His accountant told him that as long as he could show SOME business usage that it would be claimable in full.
He received a notification of audit last week and is sweating a bit now that he's taken further advice.
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