Expences Question

[J3ster]

Good Day,

I am new to Contracting and have set up a limited company. I am in the process of deciding between two online accountants I chose from posts on this site so should have that sorted very soon but would like to ask a little about expenses claims in an effort to introduce myself to the forum and get some feedback from more experience contractors.

I will be working away from my home location so need to pay for accommodation as well as fuel to and from the sites I will be working at. So my question is simply how does that work in regard to claiming the expense back? Is it that once I get paid my accommodation and other expenses are taken out of my salary and I pay tax on the remainder or is it much more complicated and wonderful?

The accommodation I chose is fairly basic as I am thinking that when it comes down to it I am still actually paying for the room myself out of my wages and only claiming back the tax which is negotiable between a room of £40 or a room of £60 or is there some advantage other than 'possible!' comfort to a more expensive room.

I would also be interested to hear from others who work away from home as to ways I can maximise and what I should be considering claiming for to avoid the pitfalls I may encounter myself. One example is that while away I will have the evenings free and have considered both joining a Gym for the term and also buying an Xbox\Playstation to amuse myself.

Thanks in advance

[cojak]

Accommodation, travel and evening meals can be claimed.

Gyms and Xboxes can't.
(because they are not incurred “wholly, exclusively and necessarily” in the course of your business)

Searching comes up with this thread.

http://forums.contractoruk.com/accou...se-claims.html

Or you can look on the right and find http://www.contractoruk.com/expenses/

[northernladuk]

You could also try searching the forums but please make sure you spell it right when you are searching.....

[captainham]

I would also be interested to hear from others who work away from home as to ways I can maximise and what I should be considering claiming for to avoid the pitfalls I may encounter myself. One example is that while away I will have the evenings free and have considered both joining a Gym for the term and also buying an Xbox\Playstation to amuse myself.

I am reliably informed by Bodgit and Scarper Accountancy Ltd that you can also claim for evening entertainment with an escort, providing you get a receipt of course, as this also counts as amusing yourself whilst away from home in the course of one's business. There is a limit of £100 per day for this so you'll need to stay away from the expensive classy ones.

[Wanderer]

I will be working away from my home location so need to pay for accommodation as well as fuel to and from the sites I will be working at. So my question is simply how does that work in regard to claiming the expense back? Is it that once I get paid my accommodation and other expenses are taken out of my salary and I pay tax on the remainder or is it much more complicated and wonderful?

You are pretty much on track there. If you are outside IR35 then you will take dividends as well as salary but the principle is the same. Most accounts have guides to what they think are acceptable expenses. As others say, generally travel and subsistence are allowable but you have to understand the 24 month rule which you can read about in the link cojak gave you.

I would also be interested to hear from others who work away from home as to ways I can maximise and what I should be considering claiming for to avoid the pitfalls I may encounter myself. One example is that while away I will have the evenings free and have considered both joining a Gym for the term and also buying an Xbox\Playstation to amuse myself.

There is a fairly light hearted thread in the General forum about staying away. Discussions in that part of the forum tend towards the less professional stuff though.

Good luck and welcome!