Contracting question: Can I claim hotel and dinner expense for 6 month contract?
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Hi,
I work from home on Fridays.
My daily rate is £400.
Yes this is my first contracting experience and I realise I might make mistakes but this is why I ask and wish to learn.
I suppose with my daily rate and the fact that I will not be on this contract longer than 24 months means I can stay in a hotel, claim meal expenses, and mileage?
What have you agreed with your client?
you can claim anything you want but if the client didn't agree to pay it at the start of the contract then I doubt very much it will get paid.0 -
Perhaps the question wasnt worded explicitly since in your situation there are a variety of interpretations of the words 'can i claim'. You obviously cant claim from your client unless that was previously agreed. But.....
You can pay for it personally then claim from your ltd company who will claim it as a tax deductible expense.
Your company can pay for it directly and claim it as a tax deductible expense.
You can also claim mileage (45p per mile up to a limit) from your ltd company and then your ltd company will claim that as a tax deductible expense. Remember that it is really all your money in practical terms so there is no point spending more on accommodation than you need to.
400 per day seems a really good rate for someone with no contracting experience at all so you seem to be onto a pretty good gig there.0 -
The key thing to keep in mind is that you, 'Mr Kokolot', are a different entity from your limited company - 'Kokolot Ltd'.
So - your client/customer needs some work doing and they employ Kokolot Ltd to do the work. Kokolot Ltd send their best bloke - Mr Kokolot - to do the work. Mr Kokolot needs to stay in a hotel, eat, and drive to the client site, so Kokolot Ltd agree to pay his expenses to do this. Mr Kokolot keeps his receipts and tells Kokolot Ltd how much they owe him, say at the end of every month. Kokolot Ltd give him the money. In turn Kokolot Ltd can put these costs through as tax deductible expenses. And, if Kokolot Ltd are VAT registered, they can claim the VAT back too.
The fact that you are both Mr Kokolot and Kokolot Ltd is neither here nor there.
All the best with the contracting - we've been doing it for nearly 7 years now, best decision we ever made.
Edited to add: speak to an accountant, as there are lots of other things you can claim for.No longer a spouse, or trailing, but MSE won't allow me to change my username...0 -
Thank you trailingspouse this is why I joined this forum so I could understand from people (and the other posters above)
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The rate quoted to the customer should have either included all your expenses, or the contract should have stated that accommodation and food costs would be added. As the OP doesn't appear to have done either of these it's likely to be an expensive lesson in the price of being self-employed.
The O/P has already told us he cant reclaim it from the client, so theres no "expensive lesson" to be learnt.
If hes doing it right, hes getting a very significant day rate that facilitates costs like this. His only question is whether he can recover the costs through his business thus save on tax.0 -
Hi,
I work from home on Fridays.
My daily rate is £400.
Yes this is my first contracting experience and I realise I might make mistakes but this is why I ask and wish to learn.
I suppose with my daily rate and the fact that I will not be on this contract longer than 24 months means I can stay in a hotel, claim meal expenses, and mileage?
Get yourself over to forums.contractoruk.com
Loads of useful information there.
As has been said, yes you can claim back hotel, subsistence, evening meal charges and mileage against your company and thus reduce your tax bill.0 -
trailingspouse wrote: »Edited to add: speak to an accountant, as there are lots of other things you can claim for.
Wholly this - my accountant is worth his weight in gold in terms of what he has saved me. :beer:0 -
Hi,
I am still getting my head around expenses with my LTD company.
Is expenses such as hotel, lunch, dinner, breakfast good in making savings in taxes?
I am trying to understand whether it's better to claim expenses in stopping the tax man getting it, or whether it's better to claim less as you can because it is more money in your pocket?
Please explain.0 -
Hi,
I am still getting my head around expenses with my LTD company.
Is expenses such as hotel, lunch, dinner, breakfast good in making savings in taxes?
I am trying to understand whether it's better to claim expenses in stopping the tax man getting it, or whether it's better to claim less as you can because it is more money in your pocket?
Please explain.
Have you got an accountant yet? Seriously they will help you far more
& should save you more money than their fees0 -
Hi,
I am still getting my head around expenses with my LTD company.
Is expenses such as hotel, lunch, dinner, breakfast good in making savings in taxes?
I am trying to understand whether it's better to claim expenses in stopping the tax man getting it, or whether it's better to claim less as you can because it is more money in your pocket?
Please explain.
If I understand your question correctly.
Get the lowest accommodation costs possible, along with cheapest meals to save yourself money. Whatever the costs, claim as expenses.0
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