Expense queries for Ltd company (no accountant)

[Andrew@Wisteria]

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!

I've not read any of the responses but based on the questions you asked, get an accountant before 05/04/17 to save you tax and deal with these sort of questions.

Not sure why you wouldn't put phone in the business.

[Andrew@Wisteria]

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).

Correct re p11d, automatic exemption applies from 16/17. We applied for exemptions prior to that.

[Chart Accountancy]

FreeAgent

The dispensation requirement was abolished with effect from 6 April 2016 which was used to remove the reporting requirement on a P11D of the reimbursment of business expenses. Therefore, for 2016-17, you will only need to complete P11D to report taxable benefits provided by the company to its employees, I.e private healthcare, company car with private use, etc.