New Company startup, working from home

SBrown86

Hi all, I finally got the guts to quit my stressful job this month, and have decided tostart my own business.

I have already registered with the company house, opened a business bank account and registered with HMRC.

Already have several clients lined up in January (I'm an IT professional) and hopefully all should be well.

Something I wanted to check, I'm going to work from home in the beginning. What expenses can I use through the business?

For example, can I buy lunch, can I put the utility bills, buy coffee?

I don't want to take the Micky, just want to use any perks that might be at my disposal.

soulheavensu

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Gleeful

Get yourself an accountant, you will need to anyway as you've formed a company. The accountant will let you know what you can and can't put through the business.

paddyrg

In the general case, though, it'll be legitimate line of business expenses. Cinema ticket probably not for an IT professional, probably OK for a film producer if there's a justifiable reason. Cups of coffee for a meeting yes, cops of coffee on your regular walk to work no. The business is a person who spends their own money to benefit themselves.

motorguy

SBrown86 wrote: »

What expenses can I use through the business?

For example, can I buy lunch, can I put the utility bills, buy coffee?

You'll be able to put through a percentage of your utility bills and 100% of items that are solely for business use.

You'd be best to speak to an accountant.

Also, look at ways to have a contractually assured payment method from the customer. If its web design, have staged payments for example, and a clear set of deliverables and what constitutes customer signoff.

motorguy

I'm in a similar position but about 1 year ahead of you. The main difference being i contract out for 3 months at a time to a specific customer, rather than completing, say, a website.

SBrown86

Thanks guys, I know an accountant that I used to do some work for that I'm due to call next week.

Would it look suspicious to buy coffee once a day if I meet with my fellow directors?

lincroft1710

How many "fellow directors" are there? Why have you got a fixation about claiming for cups of coffee?

paddyrg

Coffee with fellow directors... My 2p (which is purely an opinion and in no way advice) would be that if you're meeting at the office, it would be a stretch, if you're meeting off site (eg a recce) then absolutely fine.

If you're meeting them daily in the office, though, a coffee machine may be more appropriate ;-)

I'd just suggest not trying to nickel and dime beverages and trying to 'get away with' anything you think is marginal and have to ask here about. And get an accountant ;+)

motorguy

SBrown86 wrote: »

Would it look suspicious to buy coffee once a day if I meet with my fellow directors?

At this stage, i'd be focusing on getting the business up and running and getting yourself a steady wage, rather than trying to get the tax back on a cup of coffee.

Your accountant will advise on what you can and cant claim for.

SBrown86

motorguy wrote: »

At this stage, i'd be focusing on getting the business up and running and getting yourself a steady wage, rather than trying to get the tax back on a cup of coffee.

Your accountant will advise on what you can and cant claim for.

Yeah, fair play. It's just been completely dead between Christmas and New Year so I've been bored out of my skull.

New work laptop that I bought is arriving today though so should be able to get cracking