Reply to: End of contract (laptop expense and salary)

[psychocandy]

Don;t think nluk read the article. The advice seems to be "be honest"

[Lance]

Nope, got me there... Although Contractor Doctor does also have an article about faking sick leave as well.......

Contractor Doctor: Should I fake sick leave to avoid complications with my agency?

Haha. That article is hilarious. The basic premise seems to be "I'm ill so should I fake sickness?" WTF???

[northernladuk]

Ah the old grasping at straws in the face of failure trick... Well played....

LOL.. I don't think so....

[dx4100]

Nope, got me there... Although Contractor Doctor does also have an article about faking sick leave as well.......

Contractor Doctor: Should I fake sick leave to avoid complications with my agency?

Ah the old grasping at straws in the face of failure trick... Well played....

[northernladuk]

Nice one. To be fair, it is a few years out of date though so some of the quoted limits have changed I think.

So NLUK - any comment?

Nope, got me there... Although Contractor Doctor does also have an article about faking sick leave as well.......

Contractor Doctor: Should I fake sick leave to avoid complications with my agency?

[psychocandy]

Erm...

Contractor Doctor: Can I claim Job Seekers Allowance if I have a limited company?

Nice one. To be fair, it is a few years out of date though so some of the quoted limits have changed I think.

So NLUK - any comment?

[dx4100]

Why are you the only person on here or anywhere that gives this advice?

Erm...

Contractor Doctor: Can I claim Job Seekers Allowance if I have a limited company?

[missinggreenfields]

This could be my last month of contract with my current client and possibly it won't be extended. I was in the process of buying a MacBook for work but as there is rumour that new MacBook might be coming out next month.

Making technology decisions on what might be around the corner is a path to never buying anything.

My question is that if my contract doesn't get extended after this month and I have no more work, would I still be able to buy MacBook and use it as business expense next month? Even though I might be not Working but actively looking for a job and hoping to continue

Yes.

2nd question, do I really need to take any salary if I am off work? I have money saved up for the time I'm off work but for tax purposes, is it of any benefit to carry on claiming salary?

Why wouldn't you pay salary? Assuming you run the business on the "usual" low salary, high dividend model, then you won't be paying any income tax or NI (unless you are claiming the employers allowance, in which case paying salary is a given), so paying salary from the company means that you reduce the profit the company makes and therefore reduce the corporation tax bill. Plus, you get the money into your pocket at nil tax rates rather than having to possibly pay tax in the future on that money.

If you're worried about the company running out of cash if you pay salary, then pay the salary (or declare it on RTI) and then don't actually transfer the money - let that amount accrue in the director's loan account, so that the company owes you the money when it can pay you it. That gives you all the tax benefits and none of the cashflow worries.

Your accountant should be able to explain this to you further.

[northernladuk]

@OP.. Don't forget about claiming VAT back on capital assets over 2k if you are going to be spending a lot but take careful note of the rules. Your accountant should be your first port of call for questions though.

Claiming back VAT on capital assets over £2,000

And plenty of threads on it from here...

https://www.google.co.uk/webhp?sourc...ntractoruk.com

[psychocandy]

Why are you the only person on here or anywhere that gives this advice? Its not in the newbies guides, I've never heard my accountant suggest this and may of the respected posters on here have never put this forward.

I think you've defended it for so long you can no longer see the wood for the trees. In your fantasy land this is a viable option but not in anyone else's. Does this fact not occur to you?

Generally, I ask my accountant questions about running my business. Nothing to do with PERSONAL benefit claims. In the past I've asked the Jobcentre about that.

Then again, neither do I ask my accountant to review my contracts. Everyone has their own role ;-)

I don't 'give advice' I'm merely pointing out that its possible. Whether the OP claims or not I don't care. If he decides he cant be bothered or thinks its morally wrong then again I dont care.

[psychocandy]

Why are you the only person on here or anywhere that gives this advice? Its not in the newbies guides, I've never heard my accountant suggest this and may of the respected posters on here have never put this forward.

I think you've defended it for so long you can no longer see the wood for the trees. In your fantasy land this is a viable option but not in anyone else's. Does this fact not occur to you?

NLUK - Lets stick to the facts and not dredge up old arguments is it? Above are the facts. How many times? IT IS LEGAL TO CLAIM JSA. Whether it is moral/worth the hassle/dodgy/etc is a matter of personal opinion.

If the OP wants to find out more for himself hes free to do so. The personal opinions of either of us are not relevant because I'm sure the OP is quite capable of making his own mind up.

So please, let people make their own mind up.... We don;t agree on the moral aspects so lets just agree to disagree but I feel your being a negative influence on this forum if you don't allow others to make their own minds up.

BTW - I'm not on JSA commission ;-) that would be good. I just want to help out fellow contractors who might find this useful. You, on the other hand, seem intent on doing your best to keep it secret so no-one claims because you, personally, disagree with the whole idea.

[northernladuk]

OP - ignore those who have a dig. Here are the facts:-

1. You are a business that currently has no work for its employees (i.e. you).
2. The business can lay off its worker temporarily if it so desires.
3. Depending on your situation you can claim JSA if you want.
4. If you do this though, you can't pay salary.

Most disagree with me about whether its right or wrong to claim JSA but those are the facts.

Why are you the only person on here or anywhere that gives this advice? Its not in the newbies guides, I've never heard my accountant suggest this and may of the respected posters on here have never put this forward.

I think you've defended it for so long you can no longer see the wood for the trees. In your fantasy land this is a viable option but not in anyone else's. Does this fact not occur to you?

[psychocandy]

Hi
I had couple of questions if anyone can advise.

This could be my last month of contract with my current client and possibly it won't be extended. I was in the process of buying a MacBook for work but as there is rumour that new MacBook might be coming out next month.


My question is that if my contract doesn't get extended after this month and I have no more work, would I still be able to buy MacBook and use it as business expense next month? Even though I might be not Working but actively looking for a job and hoping to continue

2nd question, do I really need to take any salary if I am off work? I have money saved up for the time I'm off work but for tax purposes, is it of any benefit to carry on claiming salary?

I appreciate any advice possible and thanks in advance

Many thanks

Mo

OP - ignore those who have a dig. Here are the facts:-

1. You are a business that currently has no work for its employees (i.e. you).
2. The business can lay off its worker temporarily if it so desires.
3. Depending on your situation you can claim JSA if you want.
4. If you do this though, you can't pay salary.

Most disagree with me about whether its right or wrong to claim JSA but those are the facts.

[Mastersaab]

Thanks all for your time and advice
Many thanks
Regards
Mo

[WTFH]

Don't buy the computer. Only because you're buying based on"what is the latest", not "what are my requirements".
If you wait for the new one to be announced, then wait for it to be available, then you'll hear the rumours about the next announcement, or the model from the new range that they haven't released yet and it might just be that little bit better, etc.