Legitimate Expenses - Any reference material?

[pfeds]

I'm fairly new to contracting and my grasp of legitimate expenses is still a bit hazy

I've just done a search and read through a number of threads but none have really answered my questions, which is why I'm starting yet another expenses thread (sorry!).

Is there a good website/book/etc that details Ltd company expenses? Possibly with a list of do's and don'ts. I know it's a vague subject and changes yearly, but surely there's some kind of reference material available?

The expenses that I claim monthly are travel to/from work, mobile phone, broadband, computer equipment and books, and that's about it. This comes to approximately £500 a month.

I have dubiously put down a few other things, but I am unsure of whether they are claimable. My accountant and various other sources have stated that if it's justifiable then it can be put down, although my accountant may remove it as a discrepency. The problem I have is that I can justify a lot of things. I'm a software developer and do a few websites, so a lot of things can be deemed as "research".

I would be grateful if anyone can comment on the following expenses:

1) Holidays. Apparently a lot of people claim holidays as research excursions. I recently went skiing in Andorra - it is possible I was there looking for work (but then again I always am). I am going to Egypt in a few weeks as well. Obviously these are big expenses so if I can claim this then I will.

2) Last Monday I took a client out for a meal to discuss a small website. It came to £85. The guy is a chippy and helped out with my kitchen worktops, and in return I will do him a website. Due to this I won't be charging him for the basic site, but any follow up work will go through the company. Are client meals claimable normally, and in this specific case?

3) I've purchases a number of books on the internet and they arrived with a delivery note that does not state the price. What can I do in these instances? I can include a credit card statement...?

4) I am renovating a room in my house to be an office. I am completely gutting it and having it rewired, plastered, and a new floor laid. I am assuming I can't claim for this (well, I wasn't planning to), other than the £2 a week for using it as an office.

5) One last one - probably completely stupid. I recently bought a Wii with a number of games for £300. Could this ever be deemed as an expense? Theoretically I could be researching it for a games review website, and seeing as I could knock one up in a couple of hours and put it online then could that be justifiable? All this seems very hazy as I could knock up a website for pretty much anything. I was interested in car ECU programming so spent £400 on an ECU plus various components just to research it - this is something I have claimed as it involves programming and I'm a programmer.

Any info on the above would be really appreciated. Sorry if I've covered topics that have probably been covered a number of times.

Many thanks.

[oraclesmith]

Just look at it from the point of view of the company. Would you, as Director, allow another employee to claim these expense ?

1. Are you actually doing any genuine research? Any evidence? No? Then no..

2. Maybe, but it must come from profits after tax. Business entertainment is no longer a tax free perk.

3. Yes, but invoices required.

4. Yes, but you will suffer capital gains and council tax issues if you do so.

5. If your company actually produces Wii games or sell's consoles then yes, otherwise no.

In my opinion.

[Sockpuppet]

With piss takers like you about no wonder gordo goes after small businesses like we've just been found balls deep in his daughter.

[Gonzo]

You have to be able to justify all expenses as legitimate business expenses, so some of the things you have listed could be claimed, some of them are problematic.

Just think about the situation where you are sat in a room with an HMRC official, and they are asking you about the expenses that you have claimed. Can you look them in the eye and give a good explanation?

I won't go into detail on the things you have listed because you already have that in Oraclesmith's reply.

[Waldorf]

5) One last one - probably completely stupid.

Oh, and nos. 1 to 4 were not I suppose!

[Cowboy Bob]

The expenses that I claim monthly are travel to/from work

If you work at a particular site 5 days a week and are not staying overnight away from home, then you cannot claim travel expenses either.

[ASB]

1) I have claimed flights. Self and Mrs ASB went to saf for a while. I also lined up a few meetings. Company paid my flight I put the rest through as benefit in kind. Taxman queried it at an ionspection but after a while was happy, of course I had solid evidence of the few meetings.

2) probably Ok but probably not allowanble for CT. It doesn't look like legitimate subsistance.

3) CC statement should do, but strictly invoice required.

4) When renovating a part of my house as an office the taxman allowed some of the expense. Specifically a safe, specialist lighting and flooring and slate worktops. Again same investigation.

5) If you were genuinely looking at Wii software production it would be OK.

Personally I have always found a sensible strategy to be "claim everything and see what the accountant says". Don't be too disappointed when he knocks things off though.

[Epiphone]

Jesus wept! No to all except possibly 3 and use the invoice the Internet site gives you. Or claim it back from YourCo on the P11D.

[RockyBalboa]

Start-up expenses

Are start-up expenses such as company formation, contract review, insurances, etc., claimable?

Thanks.

[hugebrain]

claim for the wii

My company bought a Wii for research purposes, I completely recommend it, it's awesome!

It might even turn a profit if enough of you go to fungames.org and play the games that one day I will get around to adding...

Anyway, I'm sure investment banks don't get hassled for buying the foosball tables for their employees to play on, a Wii for a programmer is far more businessy than that!