Freelance allowances question

Steve_Roberts_3

Can someone please point me in the direction of a page online that covers the typical allowances for freelance work ie accommodation, travel, subsistence, capital allowances etc.

I keep hearing conflicting reports about what is or isn't allowed.

And are there any benefits to setting up a limited company as opposed to being self employed?

Thanks!

fengirl_2

There is no such list. As a self employed persn, you need to keep a record of all the expenditure incurred in the course of your business and as all businesses are different, there can be no list. I might for instance rent an office, you might use a room at home - its all up to you how you run your business.
If you put all your costs through a separate bank account then its hard to miss things. There will be dual use expenses such as use of your home, but here you need to calculate the additional cost of using a room at home, for instance. Travel costs are what they cost you on public transport, but the use of your own car can either be calculated on its actual costs (with private use added back on your tax return), or 40p pm for the first 10,000 miles and 25p pm thereafter.
Benefits of setting up a ltd co are that you are protected from your creditors if you go bust and you can arrange your drawings to minimise your tax liability if you are a higher rate taxpayer. Otherwise, sole trader is much more straightforward at elast to start with.
It sounds as if you might benefit with a chat to an accountant or two.

Rolo_Tomasi

If your work is through an agency, they will probably insist on you operating through a Limited company, if not then it will be up to you to decide which entity is the best for your particular circumstances. There is no 'one size fits all' solution so as suggested you are probably best finding a local accountant to chat through your individual circumstances.

There are many organisations which support freelance's in different industries. It would probably be worth your while looking into these for specific help and advice.