Expense queries for Ltd company (no accountant)

**SueEllen** · 28 March 2017, 13:54

You can find accountants that cost you less, will answer these questions for you and file things for you. Some will expect you to pay or do things like VAT and self assessment yourself.

**MrMarkyMark** · 28 March 2017, 13:57

Originally posted by jackmats View Post

Hi All,

I've been through a good few posts but I am looking for further clarification on the minefield of expenses. My situation - Ltd Company Director (formed in September 2016) and only employee, registered in Liverpool but have a year contract in Birmingham so travel down Sunday/Monday and leave Friday. I <b>do not</b> have an accountant which I realise may have been a mistake but I've took a massive wage hit due to a downtown in my industry and I decided I wasn't earning enough to justify pay £150-odd per month to an accountant.

- Firstly I claim: rent in Birmingham, travel to/from Birmingham plus the odd coffee/water/snack, commute from rented property to work each day (train), occasional food from the canteen (Between £2-6; bring lunch in otherwise which I dont claim for), professional subs, insurance..I'm sure these are allowable? I've avoided putting say my phone as it's business and personal.

- Do I need to file a P11D? All of my expenses come out of the company account with a few exceptions I've paid for myself and expensed it back into my current account later on.

- Can I claim £4/week home office use (When I do admin company etc)? And can I claim £5 per day for incidentals whilst I am in Birmingham?

Thanks!

Paint by numbers accountancy, anyone

.

If you are going to DIY your accountants, it helps that you know what you are doing first.

**SueEllen** · 28 March 2017, 13:59

In regards to expenses HMRC have two booklets for you to read:

480

490

**LondonManc** · 28 March 2017, 14:00

Get an accountant. ASAP

If you're renting a property, then you can't claim for meals because you have the facilities to make them each day.

Do it cheap, do it twice.

**northernladuk** · 28 March 2017, 14:06

Get an acc.... oh balls. Too late.

I am sure TCP will come along and help you with the questions you are asking but it still leaves a ton of stuff you don't know and stuff you don't know that you don't know.

A good FreeAgent accountant can be up to 50% lower than the figure you are quoting so worth having a look at the Accounting Recommendation thread and ringing around. Somethings are worth paying for and an accountant is one of them.

**TheCyclingProgrammer** · 28 March 2017, 14:17

Originally posted by jackmats View Post

I've been through a good few posts but I am looking for further clarification on the minefield of expenses. My situation - Ltd Company Director (formed in September 2016) and only employee, registered in Liverpool but have a year contract in Birmingham so travel down Sunday/Monday and leave Friday. I <b>do not</b> have an accountant which I realise may have been a mistake but I've took a massive wage hit due to a downtown in my industry and I decided I wasn't earning enough to justify pay £150-odd per month to an accountant.

- Firstly I claim: rent in Birmingham, travel to/from Birmingham plus the odd coffee/water/snack, commute from rented property to work each day (train), occasional food from the canteen (Between £2-6; bring lunch in otherwise which I dont claim for)

So long as you're not caught by the 24 month rule, all of travel, accommodation and subsistence expenses are claimable. If you're not aware of the 24 month rule, you're going to need to read the guides over there ---> and the other threads on the subject to make sure you understand it but in short, if you spend more than 40% of your time on-site (you do) as soon as you know you're going to be there for more than 24 months you need to stop claiming. If your initial contract was for more than 24 months you cannot claim anything. If it isn't, then as soon as its extended beyond 24 months you need to stop claiming.

, professional subs, insurance..I'm sure these are allowable? I've avoided putting say my phone as it's business and personal.

Professional subscriptions normally are but I think they need to be on the HMRC approved list to be deductible against your corporation tax bill, business insurances fine. You can't claim for your mobile phone contract if its not in the company name but YourCo can pay for a phone (even for mixed use) and you can reclaim the cost of any business calls if these have an itemised cost (i.e. not included in your normal plan minutes).

- Do I need to file a P11D? All of my expenses come out of the company account with a few exceptions I've paid for myself and expensed it back into my current account later on.

It's irrelevant whether expenses are paid directly from the company account or not if they are employee expenses (e.g. travel, subsistence, accommodation, business calls). I believe the 2015/16 tax year was the last tax year you would have needed to fill out a P11D for these kinds of expenses, they are now covered by exemptions, so no P11D needed and you don't need to mention the expense payments or make an expense claim on your tax return.

- Can I claim £4/week home office use (When I do admin company etc)? And can I claim £5 per day for incidentals whilst I am in Birmingham?

Yes and yes (although the £5 incidental expenses claim is per night, not per day).

**jackmats** · 28 March 2017, 14:31

Originally posted by TheCyclingProgrammer View Post

So long as you're not caught by the 24 month rule, all of travel, accommodation and subsistence expenses are claimable. If you're not aware of the 24 month rule, you're going to need to read the guides over there ---> and the other threads on the subject to make sure you understand it but in short, if you spend more than 40% of your time on-site (you do) as soon as you know you're going to be there for more than 24 months you need to stop claiming. If your initial contract was for more than 24 months you cannot claim anything. If it isn't, then as soon as its extended beyond 24 months you need to stop claiming.

Professional subscriptions normally are but I think they need to be on the HMRC approved list to be deductible against your corporation tax bill, business insurances fine. You can't claim for your mobile phone contract if its not in the company name but YourCo can pay for a phone (even for mixed use) and you can reclaim the cost of any business calls if these have an itemised cost (i.e. not included in your normal plan minutes).

It's irrelevant whether expenses are paid directly from the company account or not if they are employee expenses (e.g. travel, subsistence, accommodation, business calls). I believe the 2015/16 tax year was the last tax year you would have needed to fill out a P11D for these kinds of expenses, they are now covered by exemptions, so no P11D needed and you don't need to mention the expense payments or make an expense claim on your tax return.

Yes and yes (although the £5 incidental expenses claim is per night, not per day).

Thanks everyone for the responses! I found the accountant thread so will ring some of them up and see if they can help!

**vwdan** · 28 March 2017, 21:32

Originally posted by LondonManc View Post

If you're renting a property, then you can't claim for meals because you have the facilities to make them each day.

Do what? I've never heard of this.

**northernladuk** · 28 March 2017, 22:31

Originally posted by vwdan View Post

Do what? I've never heard of this.

http://www.contractorweekly.com/busi...as-an-expense/

Expense queries for Ltd company (no accountant)