Is it worth claiming expenses?

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Burdock replied

19 November 2008, 12:16
Cheers for the advice guys!
Leave a comment:
QwertyBerty replied

19 November 2008, 11:47
It's a no brainer. As Just1morethen says, make the claim.

QB.
Leave a comment:
pmeswani replied

19 November 2008, 11:12
Originally posted by Burdock View Post

Hi,

My current business model entails paying myself minimum salary each month, and drawing 90% of the profit as dividends.

In my current contract I am staying in a B&B and travelling a long distance twice a week.

I am currently paying for the B&B and petrol out of my own money and then claiming these back from my company as expenses.

Obviously, this reduces my dividend payout.

My question is....should I continue claiming these expenses, or just ignore them. What would result in most money saving / earning?!

And why am I still asking such basic questions after 2 years contracting (I know the answer to this one )

Thanks for any advice!
Burd

It depends on a number of things. How much is your business income and business expenditure? How much spare cash have you got in the business account? Are you prepared to take a lower Dividend in favour of claiming expenses? (it may reduce the amount of Higher Rate tax you may have to pay - if it applies). Do you have enough money in the business bank for a rainy day?

I'm not expecting answers in this forum (for obvious reasons), but you needt weigh up the pro's and con's of claiming expenses based on your current business model. It may be worth speaking to your accountant to work out a new model so that you can claim expenses.
Leave a comment:
Alan @ BroomeAffinity replied

19 November 2008, 10:34
It also reduces your taxable profit reducing your CT liability by 21% of whatever you are spending. So yes, of course, it is worth claiming.
Leave a comment:
Burdock started a topic Is it worth claiming expenses?

19 November 2008, 10:27
Is it worth claiming expenses?

Hi,

My current business model entails paying myself minimum salary each month, and drawing 90% of the profit as dividends.

In my current contract I am staying in a B&B and travelling a long distance twice a week.

I am currently paying for the B&B and petrol out of my own money and then claiming these back from my company as expenses.

Obviously, this reduces my dividend payout.

My question is....should I continue claiming these expenses, or just ignore them. What would result in most money saving / earning?!

And why am I still asking such basic questions after 2 years contracting (I know the answer to this one )

Thanks for any advice!
Burd
Tags: None