Legitimate Expenses & PAYE question

**Sockpuppet** · 18 April 2007, 11:21

1. Is it fook. I am assuming that these were some tarts you wanted into bed and not "real" clients. The taxi certainly wouldn't count as "entertaining".

2. About right.

**Bluebird** · 18 April 2007, 11:31

Originally posted by css_jay99

Just a couple of questions guys,

Question 1
I just wanted to find out what is legitimate with regards to Expenses.

Well, I took 2 potential clients(..girls) out for a drinks in a bar/club. Bill came to about £180 (included my cab fare back home at 4am)

I was wondering if this is a legitimate business expense

Question2
I pay myself about £1000 Net monthly and my Mortgage is about £750. there off course the other standard bills (electricity/gas/council....) to pay as well.
I was wondering if Paying myself this amount is justified or too low

css_jay99

1. Did you keep reciepts ? and can you back up the claim in front of HMRC that there was no BIK for you persoanlly ? Thought not. - There is however an allowance for a annual company bash £150 per head - your accountant may be able to pass this off for that.

2. Don't get this question you pay yourslef £1k and your o/hs are about the same ? so what ?

**zathras** · 18 April 2007, 11:39

Originally posted by css_jay99

Just a couple of questions guys,

Question 1
I just wanted to find out what is legitimate with regards to Expenses.

Well, I took 2 potential clients(..girls) out for a drinks in a bar/club. Bill came to about £180 (included my cab fare back home at 4am)

I was wondering if this is a legitimate business expense

Question2
I pay myself about £1000 Net monthly and my Mortgage is about £750. there off course the other standard bills (electricity/gas/council....) to pay as well.
I was wondering if Paying myself this amount is justified or too low

css_jay99

Question 1: No. YourCo could pay your clients expenses but not your own.

Question 2: The level of salary is a matter for the directors of YourCo. It has no bearing on your status under Ir35, however a low salary, high dividend may highlight your company as one worth investigating.

**css_jay99** · 18 April 2007, 13:57

sh*t I put about £200 in Entertainment in last year's accounts !.

Ahh sod it, dont want to get into trouble with hmrc, I might as well just absorb the cost.

Them both BI, so looking forward to a next encounter

.

strange how drinks bring out the truth in women!

Originally posted by zathras

Question 2: The level of salary is a matter for the directors of YourCo. It has no bearing on your status under Ir35, however a low salary, high dividend may highlight your company as one worth investigating.

Its a case of Small salary (£12000 pa NET) and high dividend. I thought thats what most people here are doing ?. If so we are all at the same risk

css_jay99

**Red 7** · 18 April 2007, 14:11

Originally posted by css_jay99

If so we are all at the same risk
css_jay99

I would think that those who put their 50" Plasmas and drunken bisexual binges through their expenses can be confident that they are at 'slightly' higher risk.

**dejongj** · 18 April 2007, 16:40

Next time find some lady friends who have their own limited company and are VAT registered....I know of a few, well strictly speaking they are BTW registered so I guess it would be the EC 0% rate and thus little benefit if you were on the FRS....

**Gonzo** · 18 April 2007, 17:23

AFAIK

1. Your company does not get tax relief on Business Entertaining so as long as it is properly recorded I can't see it being too much of a problem, provided you have receipts.

2. Does not make a difference. There are others that disagree on this. None of them are accountants.

**css_jay99** · 18 April 2007, 23:45

Originally posted by dejongj

Next time find some lady friends who have their own limited company and are VAT registered....I know of a few, well strictly speaking they are BTW registered so I guess it would be the EC 0% rate and thus little benefit if you were on the FRS....

err, i am lost. pardon?

Originally posted by Gonzo

AFAIK
1. Your company does not get tax relief on Business Entertaining so as long as it is properly recorded I can't see it being too much of a problem, provided you have receipts.

So how come my Sage Accounts is showing Entertainment as a deductable amount b4 arriving at profits b4 Tax ?

Legitimate Expenses & PAYE question