Taking money out of the business

phill79

Hi,
I am a director of my own company, apart from dividends and a small "monthly wage", what else can I get money out of the business for. Not necessarily cash, but pay for things. I work from home and I've read that you can claim a %age of fuel bills, but not sure exactly how much. I also claim mileage each month too.
After that I'm a bit confused.
Thanks

Wywth

phill79 wrote: »

Hi,
I am a director of my own company, apart from dividends and a small "monthly wage", what else can I get money out of the business for. Not necessarily cash, but pay for things. I work from home and I've read that you can claim a %age of fuel bills, but not sure exactly how much. I also claim mileage each month too.
After that I'm a bit confused.
Thanks

As a director, you should be being paid a salary.

As a company, it could pay for an accountant ... it would be well worth it by the sounds of things

Wywth

As you say, some of what is listed is the 'creative version'

I think you will find a dispensation is required for certain expenses if you don't wish them reported at the end of the tax year on forms P11D or P9D

I'm really surprised under Travel & subsistence, HMRC allowed you to claim for a meal for a client; that in my opinion is entertainment.

Travel & subsistence should relate to those individual expenses incurred wholly and necessarily by the employee of the company in carrying out their business.
So if it is wholly and necessary to carry out a business meeting in a nice restaurant, then a claim for your own meal may be accepted, but not the additional cost of those you are wining & dining.

In short, you can actually try & get away with almost anything initially, (or 'ultimately flexible' in your parlance) as the whole system relies on trust and truthful disclosure. (no evidence required to be submitted)
But give HMRC any reason to investigate you and they'll hold you upside down and shake you till they drain your pockets of every last penny ... and continue shaking you just in case there might be the spare farthing dropped in your turn-ups. :eek: