New LtdCo & Expenses

[pleomax]

Ok another newbie question here.
I have myltd set up and I am sure you are all now aware that my first invoice has been paid I am planning on paying myself in the new year.

The question I have now is can i log my expenses i.e 600 miles & £0.40 = £240 and write a cheque to myself for that amount? or is doing that dodgy ground to walk untill i pay myself?

I know when i was working with the brolly i could claim 40p per mile for first 10k per year, do i have to take into account miles done through the brolly, it was for two different contracts if that makes sense and this present contract has only ever gone through myltd?

I hope that makes sense?

Pleomax

[Crossroads]

Ok another newbie question here.
I have myltd set up and I am sure you are all now aware that my first invoice has been paid I am planning on paying myself in the new year.

The question I have now is can i log my expenses i.e 600 miles & £0.40 = £240 and write a cheque to myself for that amount? or is doing that dodgy ground to walk untill i pay myself?

I know when i was working with the brolly i could claim 40p per mile for first 10k per year, do i have to take into account miles done through the brolly, it was for two different contracts if that makes sense and this present contract has only ever gone through myltd?

I hope that makes sense?

Pleomax

This has been done a 100 times before...use the search function FFS.

1. Your company can pay you whatever mileage rate they fancy. If it's not within the HMRC guidelines then it will attract a BiK charge.

2. It is all about the location and the journey. Nothing to do with different employers, different contracts or different clients. Lots of guidelines and examples on HMRC's website.

[QwertyBerty]

>The question I have now is can i log my expenses i.e 600 miles & £0.40 = £240 and write a cheque to myself for that amount? or is doing that dodgy ground to walk untill i pay myself?

This is fine.

>I know when i was working with the brolly i could claim 40p per mile for first 10k per year, do i have to take into account miles done through the brolly, it was for two different contracts if that makes sense and this present contract has only ever gone through myltd?

Your AMAP mileage (Approved Mileage Allowance Payment) gives you an allowance of 10000 miles per tax year at 40p, so yes you need to keep that in mind when working out your mileage allowance with your ltdco.

QB.

[Bob Jones]

HMRC are quite generous in this respect in that you can have multiple amounts of 10000 in the one year provided the employments are not associated

http://www.hmrc.gov.uk/manuals/eimanual/EIM31280.htm

regards

Bob

[pleomax]

Thank you for the very helpful replies.

[Platypus]

I created a company "expense claim form" which I'd fill in with details of mileage, taxi fares, whatever and submit that to the accounts department (i.e. me) who would write a cheque out payable to me. As long as there's a paper trial so the cheque can be matched to the claim then what you're suggesting is fine.

[Sukuzov]

mileage

HMRC are quite generous in this respect in that you can have multiple amounts of 10000 in the one year provided the employments are not associated

http://www.hmrc.gov.uk/manuals/eimanual/EIM31280.htm

regards

Bob

I suppose one thing to consider is that however many 'employments' yourco conducts in any single tax year you, the claimant, will only ever be employed by yourco thus only one lot of 10000 miles @ 40p can be claimed.

I may be wrong and if so please correct me as it would benifit me greatly if I was wrong.

[TheFaQQer]

I created a company "expense claim form" which I'd fill in with details of mileage, taxi fares, whatever and submit that to the accounts department (i.e. me) who would write a cheque out payable to me. As long as there's a paper trial so the cheque can be matched to the claim then what you're suggesting is fine.

If you have a definite system, then you may be able to get a dispensation which means that you don't have to declare them on a P11D either.

[xoggoth]

Get booklets 480 and 490 from HMRC site (or I think they are on the employer's CD ROM?) . When I started contracting all IR gudance was totally incomprehensible but they have been quite good for a few years.

[Sukuzov]

I suppose one thing to consider is that however many 'employments' yourco conducts in any single tax year you, the claimant, will only ever be employed by yourco thus only one lot of 10000 miles @ 40p can be claimed.

I may be wrong and if so please correct me as it would benifit me greatly if I was wrong.

Further consideration on this matter leads me to think that if you were to adopt the stance of 'new employment-10,000@40p-starts again' could jeapodise any IR35 defence.