Claiming money back?

firehawk_2

Hi! I'm new here!
I've just started my own limited company and being new to the whole business area, I need some advice/help.

I hear people say they can "claim back" some expenses for their business. Such things could be things like travelling expenses (train tickets) and other things, such as computer equipment required for the company.

Now the question is, how do you go about claiming that back? And how much can you claim back? How does it work? What does it really mean when you "claim back" the expense?

Thanks, hope you can guide me correctly!

p1an0player

The Ltd company is a separate legal entity to yourself, even if you are the only Director. The main point of you claiming back expenses from the company, is that the amount of these expenses is taken off the company profits. So if the profits are less, there is less corporation tax to pay.

HMRC (what was called the Inland Revenue) say that allowable expenses should be "wholly, exclusively and necessarily" incurred for the business and there is lots of guidance on what are allowable expenses.

In time you might be able to get a company debit card which is simpler as the company can pay for the goods/services directly without you needing to claim it back. There's also VAT to think about, as if the company is VAT registered, the VAT on the things your company buys can be offset against the VAT that your company charges on its invoices.

Contractoruk.com and pcg.org.uk might be useful further reading, the latter recommends accountants (which you will need).

Good luck

IamWHOiSayIam

I know this works for Self-Employed people (and Contractors), but technically your an employee of your own Limited Company.

For the Self-Employed you can claim "expenses" on pretty much most things. (Travel, Tools, Food etc).

When it comes to a Limited Business, tax relief is much more complicated and I'd advise you speak to an Accountant. (Or the Tax Office)