Just did my first week!

[RockyBalboa]

.. and have a few questions.

I have searched and read many previous posts but I am still confused about these things:

1. Daily subsistence

i) if I am staying all week in accommodation in another city, I have read I can claim lunch or dinner - is this the receipted value or a particular amount.

ii) if I am driving each day to and from another city, can I claim lunch or dinner?

iii) are there any 'per diem' or 'per noctum' type of daily allowances that I can claim? What about misc daily costs such as newspaper, coffee etc?

2. Mobile phone

i) I understand that I need to get my mobile company to put the contract in my company name.. fine. However, in future, if I purchase a new contract in my company name, can this be purchased through the company? (I assume I can only have one mobile for the company?).

ii) Can I purchase a blue-tooth handsfree through the company?

Vat and FRS:

I will be registering for Vat and FRS.. I understand these take time to come through and in the meantime I bill the client stating 'Vat status pending'. However, how does this affect purchases? On the FRS if I purchase things through/for the company I know I cannot claim the Vat back (unless it's over 2000 pounds), is this the only difference on the FRS?

Thanks.

[Sockpuppet]

1.

i) search. The term done to death really does apply to this point?
ii) Is this from home > work > home or other accomidation > work > other accomidation.
iii) AFAIK its £5 if staying away from home

2

i) Yes. You are allowed one phone per company employee without paying NIC on it.

ii) You can claim for whatever you want. Justifying it would be the appropiate bit. You can suitably claim its for your employees while they are driving as you instructed them to answer the phone etc. Safety etc.

3

i) Yes you calc what you can claim back when you submit your first vat return - which you wont do until you get your vat number.

[RockyBalboa]

1.

i) If I am driving everyday from home->work then work-> home I was wondering what (if anything I can claim)? I can't seem to find this when searching.

ii) If staying away from home is the £5 receipted?

2.

i) If the bluetooth handsfree is for myself is that okay?

3.

i) If I join the FRS then I assume I cannot claim the Vat back but what rate of Vat do I pay back to HMRC?

Thanks.

[Sockpuppet]

1. i) i think its a set amount. However I would get everything reciepted. Just easier should they investigate.

ii) unreciepted


2 i) Yes

3 i) Depends what type of business you are (I think its 12%, 11% in first year).

[RockyBalboa]

1. i) i think its a set amount. However I would get everything reciepted. Just easier should they investigate.

Is this for lunch or misc costs like newspaper etc? Do you know what the 'set' amount is or is it just the receipt value whether 5 pound or 10 pounds etc?

3 i) Depends what type of business you are (I think its 12%, 11% in first year).

Do I pay back vat on expense items even though I have not (and cannot under FRS) claimed Vat relief?


Thanks.

[VectraMan]

Do I pay back vat on expense items even though I have not (and cannot under FRS) claimed Vat relief?

You mean pay back to yourself? Yes. Refund the full amount.

It's 13% isn't it, and 13% of the gross. So if you invoice £1000 + VAT, the amount you pay is 13% of £1175, not 13% of £1000. So it's not as good as you probably think it is. I've just got around to sending off the form for FRS, and it's going to get me a whopping £30 per month extra. Let the good times roll.

If you have any purchases to make, try to make them before you join the FRS.

[RockyBalboa]

Hi

I understand how it works in terms of me charging the client vat then paying back to HMRC the lower rate under the FRS but what I mean is when doing a vat return to HMRC do I do something similar for my expenses. So if I have bought a bluetooth handsfree for 100 inc vat will I need to pay 13 pounds (or 12 in the first year) back to HMRC?

Thanks.

[Sockpuppet]

Hi

I understand how it works in terms of me charging the client vat then paying back to HMRC the lower rate under the FRS but what I mean is when doing a vat return to HMRC do I do something similar for my expenses. So if I have bought a bluetooth handsfree for 100 inc vat will I need to pay 13 pounds (or 12 in the first year) back to HMRC?

Thanks.

No.

You pay back money you charge. So you bill £1000 which becomes £1175 with VAT on. You pay 13% of £1175 back to HMRC.

Why not get your accountant to sort this for you?

[kramer]

Why not get your accountant to sort this for you?

My thoughts exactly... free advice is cheap advice...

Get on the phone to the accountant and get him to earn hi money!