Contractor Advice

undanagedvirus

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

motorguy

undanagedvirus wrote: »

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

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)