End of contract (laptop expense and salary)

**Ketto** · 15 May 2016, 04:38

If the Macbook is for providing services to your clients you should be able to purchase it through the business regardless of whether you are in or out of contract. You don't have to take a salary, but you may as well take up to your tax free allowance each month as it is untaxed.

**northernladuk** · 15 May 2016, 06:40

Originally posted by Mastersaab View Post

My question is that if my contract doesn't get extended after this month and I have no more work, would I still be able to buy MacBook and use it as business expense next month? Even though I might be not Working but actively looking for a job and hoping to continue

You run a business. Time to start acting like one and not a disguised permie.

2nd question, do I really need to take any salary if I am off work? I have money saved up for the time I'm off work but for tax purposes, is it of any benefit to carry on claiming salary?

You are not off work. You are working at being a contractor and finding a new client. It's what we do.

You really need to understand what you do better. If you did you wouldn't need to ask questions like this.

**northernladuk** · 15 May 2016, 06:44

Oh.. And get an accountant. Very useful they are.

**cojak** · 15 May 2016, 07:18

Welcome!

You'll find a lot of answers to your questions within the CUK website.

On the right you'll find CUK Navigation. >>>>>>>>>

Look down and you'll come to the First Timers section. Have a read through there.

Umbrella or Ltd? Look here: Setting up your company - Ltd or Umbrella?

Basic expenses questions answered here: Contractor Expenses - How to claim Travel and other expenses via Limited Company or Umbrella

Then pay particular attention to IR35.

And here are the rules when using company credit cards: http://www.hmrc.gov.uk/payerti/exb/a-z/c/cards.htm

If you go into the Accounting/Legal forum you'll discover the thread Basic advice when running your own contractor business.

Guide to Contracts also has some good articles.

Do you want advice on the state of the contract market for your specialism/location? Have a look at this website; it will answer most if not all of your questions: IT Jobs Watch, Tracking the IT Job Market

And finally - accountant recommendations - Ta-da!

Happy reading!

**WTFH** · 15 May 2016, 07:41

Don't buy the computer. Only because you're buying based on"what is the latest", not "what are my requirements".
If you wait for the new one to be announced, then wait for it to be available, then you'll hear the rumours about the next announcement, or the model from the new range that they haven't released yet and it might just be that little bit better, etc.

**Mastersaab** · 15 May 2016, 12:07

Thanks all for your time and advice
Many thanks
Regards
Mo

**psychocandy** · 16 May 2016, 07:37

Originally posted by Mastersaab View Post

Hi
I had couple of questions if anyone can advise.

This could be my last month of contract with my current client and possibly it won't be extended. I was in the process of buying a MacBook for work but as there is rumour that new MacBook might be coming out next month.

My question is that if my contract doesn't get extended after this month and I have no more work, would I still be able to buy MacBook and use it as business expense next month? Even though I might be not Working but actively looking for a job and hoping to continue

2nd question, do I really need to take any salary if I am off work? I have money saved up for the time I'm off work but for tax purposes, is it of any benefit to carry on claiming salary?

I appreciate any advice possible and thanks in advance

Many thanks

Mo

OP - ignore those who have a dig. Here are the facts:-

1. You are a business that currently has no work for its employees (i.e. you).
2. The business can lay off its worker temporarily if it so desires.
3. Depending on your situation you can claim JSA if you want.
4. If you do this though, you can't pay salary.

Most disagree with me about whether its right or wrong to claim JSA but those are the facts.

**northernladuk** · 16 May 2016, 07:51

Originally posted by psychocandy View Post

OP - ignore those who have a dig. Here are the facts:-

1. You are a business that currently has no work for its employees (i.e. you).
2. The business can lay off its worker temporarily if it so desires.
3. Depending on your situation you can claim JSA if you want.
4. If you do this though, you can't pay salary.

Most disagree with me about whether its right or wrong to claim JSA but those are the facts.

Why are you the only person on here or anywhere that gives this advice? Its not in the newbies guides, I've never heard my accountant suggest this and may of the respected posters on here have never put this forward.

I think you've defended it for so long you can no longer see the wood for the trees. In your fantasy land this is a viable option but not in anyone else's. Does this fact not occur to you?

**psychocandy** · 16 May 2016, 08:11

Originally posted by northernladuk View Post

Why are you the only person on here or anywhere that gives this advice? Its not in the newbies guides, I've never heard my accountant suggest this and may of the respected posters on here have never put this forward.

I think you've defended it for so long you can no longer see the wood for the trees. In your fantasy land this is a viable option but not in anyone else's. Does this fact not occur to you?

NLUK - Lets stick to the facts and not dredge up old arguments is it? Above are the facts. How many times? IT IS LEGAL TO CLAIM JSA. Whether it is moral/worth the hassle/dodgy/etc is a matter of personal opinion.

If the OP wants to find out more for himself hes free to do so. The personal opinions of either of us are not relevant because I'm sure the OP is quite capable of making his own mind up.

So please, let people make their own mind up.... We don;t agree on the moral aspects so lets just agree to disagree but I feel your being a negative influence on this forum if you don't allow others to make their own minds up.

BTW - I'm not on JSA commission ;-) that would be good. I just want to help out fellow contractors who might find this useful. You, on the other hand, seem intent on doing your best to keep it secret so no-one claims because you, personally, disagree with the whole idea.

End of contract (laptop expense and salary)