Hi all,
I have a quick question that I hope some accountant, or anyone with this sort of knowledge could answer.....
I am with Paystream, just started contracting this week. So last week had to set up my own ltd co. etc etc. Well Paystream did all of that for me. I am still under the impression that I am really with an umbrella company. Although on paper I am a director of my own company and Paystream are the company secretary. After speaking to Paystream I have been told I can claim 18p of every £1 I occur in expenses (expenses are renting a room (£400 a month) and my breakfast and evening meal). Another contractor started in the exact same role as me and has been contracting for a while but this is the first time he has actually gone down the Ltd co. route. He just has an accountant that does all his admin/payroll etc etc. He has been told that he can put all of those expenses (same as mine, renting a room, breakfast and evening meal) through the company as non taxable profit. So basically he will be able to see a minimum of 80% of his expenses. These expenses are not claimed throught the client but from the Inland Revenue. So in comparison if for instance the expenses are £1000 a month he would be getting £800 of that back, where as I will be getting £180!!
Hope this makes sense to someone. Sorry if it sounds a bit retarded but I am VERY new to contracting and just trying to get my head round it all!!
Thanks
Barrie
I have a quick question that I hope some accountant, or anyone with this sort of knowledge could answer.....
I am with Paystream, just started contracting this week. So last week had to set up my own ltd co. etc etc. Well Paystream did all of that for me. I am still under the impression that I am really with an umbrella company. Although on paper I am a director of my own company and Paystream are the company secretary. After speaking to Paystream I have been told I can claim 18p of every £1 I occur in expenses (expenses are renting a room (£400 a month) and my breakfast and evening meal). Another contractor started in the exact same role as me and has been contracting for a while but this is the first time he has actually gone down the Ltd co. route. He just has an accountant that does all his admin/payroll etc etc. He has been told that he can put all of those expenses (same as mine, renting a room, breakfast and evening meal) through the company as non taxable profit. So basically he will be able to see a minimum of 80% of his expenses. These expenses are not claimed throught the client but from the Inland Revenue. So in comparison if for instance the expenses are £1000 a month he would be getting £800 of that back, where as I will be getting £180!!
Hope this makes sense to someone. Sorry if it sounds a bit retarded but I am VERY new to contracting and just trying to get my head round it all!!
Thanks
Barrie
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