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  • FIRST POST
    • undanagedvirus
    • By undanagedvirus 11th Oct 16, 9:27 PM
    • 2Posts
    • 0Thanks
    undanagedvirus
    Contractor Advice
    • #1
    • 11th Oct 16, 9:27 PM
    Contractor Advice 11th Oct 16 at 9:27 PM
    Hi there guys. Hopefully this is in the correct sub-section!

    I am looking to set up my own limited company and doing contract work.
    But one thing that is putting me off is the expenses side of this, this is were i need help!
    Ok lets say I make £3000 a month I pay £1000 a month for my expenses when I am working on a contract for my food and accommodation and travel.
    Can I claim all of this back? If it does all get paid back does that mean I get that £1000 back into my business account?

    (at the end of the tax year obviously and providing i have kept good records of everything)

    Thank you
Page 1
    • motorguy
    • By motorguy 11th Oct 16, 10:52 PM
    • 13,777 Posts
    • 7,279 Thanks
    motorguy
    • #2
    • 11th Oct 16, 10:52 PM
    • #2
    • 11th Oct 16, 10:52 PM
    Hi there guys. Hopefully this is in the correct sub-section!

    I am looking to set up my own limited company and doing contract work.
    But one thing that is putting me off is the expenses side of this, this is were i need help!
    Ok lets say I make £3000 a month I pay £1000 a month for my expenses when I am working on a contract for my food and accommodation and travel.
    Can I claim all of this back? If it does all get paid back does that mean I get that £1000 back into my business account?

    (at the end of the tax year obviously and providing i have kept good records of everything)

    Thank you
    Originally posted by undanagedvirus
    You basically claim back expenses (within HMRC guidelines) off your company monthly / weekly or however frequently suits - so you'd claim that £1000 out of the business for that month (assuming you paid the expenses yourself in the first place)

    In your company accounts those expenses come off your companys turnover before any tax calculations are made.

    Typically, you would pay yourself a modest wage to stay under the tax threshold and draw the rest as dividends (on which your company pays a lesser tax rate)
    Last edited by motorguy; 11-10-2016 at 10:55 PM.
    Regards

    Paul
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