Own LTD company

[AZZIK]

I am new to this and would like to set up my own limited company and would like some advice. As at moment I am paying a lot of money to Giant Powerhouse.

What kind of contract do you need to set up with the agency or does anyone have any examples of theirs which makes it fall outside the IR35.

For expenses like mielage and food subsitance do you need the receipts or can you allocate yourself a certain amount for food like £5 a dy.

If you have to fill in P11D form for expenses do you need to send them receipts for petrol and food allowance.

By setting uo on your own how much perecentage of salary do you take home. With Giant I take about 78%

Thank you

[Sockpuppet]

Do a search.

Go join PCG they have contract you can use or get the contract reviewed by B&C.

You DO need reciepts and if you are taking home 78% of pay then if the tax man gets interested your screwed basically. My guess if you have been filing high expense claims without reciepts = naughty.

Have fun.

[AZZIK]

I have never claimed anything that I have not incurred for example the mielage is all true but I was told I do not need receipts therefore I never kept any.

Regarding the subsitance I don't get receipts at work for the food I buy as they use a top up card system.

So not sure what to do.

I will make sure I keep the receipts in the future.

[Sockpuppet]

I have never claimed anything that I have not incurred for example the mielage is all true but I was told I do not need receipts therefore I never kept any.

Regarding the subsitance I don't get receipts at work for the food I buy as they use a top up card system.

So not sure what to do.

I will make sure I keep the receipts in the future.

1. Prove it. No reciept = you didn't inccur it (at least in HMRC eyes)
2. Ask for reciepts for the top up cards. They have to give you one if they are charging you for something. It would have to be got each meal time though.

[Nixon Williams]

I am new to this and would like to set up my own limited company and would like some advice. As at moment I am paying a lot of money to Giant Powerhouse.

What kind of contract do you need to set up with the agency or does anyone have any examples of theirs which makes it fall outside the IR35.

For expenses like mielage and food subsitance do you need the receipts or can you allocate yourself a certain amount for food like £5 a dy.

If you have to fill in P11D form for expenses do you need to send them receipts for petrol and food allowance.

By setting uo on your own how much perecentage of salary do you take home. With Giant I take about 78%

Thank you

There are specialist legal services that can advise regarding the contract, although remember that it is not just about the contract but how you work etc.

You should always keep receipts. If you are on the Flat Rate VAT scheme petrol receipts are not required, Giant probably want some so that they can reclaim the VAT (do you get this?). You cannot claim flat rate allowances for food etc. If you work away and stay away from home you can claim certain costs.

The percentage you keep depends on your income, expenses etc but I would say if the contract is worth say £50K pa then you could keep 82% if IR35 does not apply, even on £100K you could be keeping over 72%.

I hope thsi helps.

Alan

[tim123]

I have never claimed anything that I have not incurred for example the mielage is all true but I was told I do not need receipts therefore I never kept any.

Regarding the subsitance I don't get receipts at work for the food I buy as they use a top up card system.

So not sure what to do.

I will make sure I keep the receipts in the future.

Buying lunch at a works canteen is not likely to be an allowable expense. Everyone who works a full day has to do this. There's no special excemption for us. The daily allowance if for days when you have to travel a distance to work which is vastly different to the average commute. Leaving home at 7:00 and getting back at 19:00 is not enough.

tim

[Adamski]

That's news to me…My agency advised that if I left home before half 7, then I was eligible to claim the breakfast allowance, and then if I work between 12-2, I am eligible for the lunch allowance. As they have a dispensation, I don't need to provide receipts, but I keep the ones I can get (and where I remember), for my own purposes. Agreed that it's no different to a permie, but surely it's the same as if yu were sub-contracting for a large company - you file and expenses form each week/month, so why should it be any different here? I'm a bit confused as everyone seems to have their own opinions about expenses. As long as you have incurred it and can prove it, and keep receipts, then it's fine isn't it (regardless of what the agency says)????

[XLMonkey]

That's news to me…My agency advised that if I left home before half 7, then I was eligible to claim the breakfast allowance, and then if I work between 12-2, I am eligible for the lunch allowance. As they have a dispensation, I don't need to provide receipts, but I keep the ones I can get (and where I remember), for my own purposes. Agreed that it's no different to a permie, but surely it's the same as if yu were sub-contracting for a large company - you file and expenses form each week/month, so why should it be any different here? I'm a bit confused as everyone seems to have their own opinions about expenses. As long as you have incurred it and can prove it, and keep receipts, then it's fine isn't it (regardless of what the agency says)????

as long as you have incurred it and can prove it,
AND
that it complies with the current HMRC guidance on expenses,

then its fine.

tbh, you really need to read the HMRC guidance, and follow that. Start here

http://www.hmrc.gov.uk/manuals/senew/SE31815.htm

then follow the links from it.

The guidance on subsistence expenses where you are commuting daily is pretty limited, but for what its worth I think your agency is wrong: I think that payments for meals, where there is no overnight stay and no other business purpose (e.g. client entertainment), are likely to be treated by HMRC as taxable.

[Sockpuppet]

Think about it this way... "would a permie claim for it".

If the answer is NO. Then DONT claim for it.

Even if you are operating a Ltd coy you are a employee of it. Claim it by all means but be prepared to pay the BIK for it.

[AZZIK]

Thanks to everyone that has replied you have been a great help.
I think I won't claim for petrol and food subsitance if it can land me in trouble.

It is nice to be able to ask experianced people for help and advice on this forum when needed.

By sounds of it it seems as a contractor you can end up with a similar salary as if you were permanant with an agency for example I have just found out from giant that I am supposed to be putting 80 pound a side a week for self assessment that I will have to pay because of my dividend. I don't understand this because I thought mananged companies dealt with all the tax, NI etc that your supposed to pay to inland Revenue.

I don't have any income coming in except this contract but no expenses and putting money aside leaves me with 67% of my salary so am I better off working permanant where I will get holidays and benefits.
My current contract falls outside IR35.