Expenses and Brookson

[NotAllThere]

It's your limited company that pays the expenses. If you incur an expense, your profit is reduced, and hence amount available for dividends is reduced. The plus side is that the expense is tax-deductable. So for a £100 expense, the amount the profit is reduced is only £79. It means expensing things is cheaper than if you don't expense, but you still have to pay.

[PhilAtBFCA]

Running a Company

Hi cz61

Gosh !

Its difficult to tell whats going on from the information supplied. If you PM me we can swop email addresses and maybe you could send me some screen shots.

Do you have access to a Profit and Loss account and a Balance Sheet ? This is where you find out how much money is really available to you as dividends and reimbursed expenses.



Phil

[Beefy198]

Why do you expect the full amount back?

[jmo21]

what is the £700? salary, or a weekly dividend?

Revenue don't give you any money by the way

your company's corp tax bill decreases the more expenses it pays out

[tim123]

Hi can anyone shed any light on re-imbursement of expenses from Brookson.

I have a Ltd Company through Brookson and have just started claiming expenses, the following is an example of 2 week invoices I submitted and subsequent payment.

Week 1 40 hours worked, no expenses
Funds available to take was approx £700.0.

Week 2 40 hours worked, expenses claimed £260.0
Funds avilable to take was £754.0
I don't fully understand the working of this but it appears to me I am not getting back the money I fork out, (i.e shortfall of £190.) I emailed Brookson and they said its to do with tax relief.

"The Revenue only gives you 21% of the net value of your expenses.
21% of your expenses at £259.84 is £54.5664 (this is the difference)"

The statement shows the £260.0 as being included in the funds available but the dividend is greatly reduced.

Can anyone tell me if this correct or am I not understanding the workings of the expenses and will I retrive the money through less tax.
Would appreciate any advice.

Chaz

This is a load of old Coblers.

As Fred says. Get an accountant who knows what they are doing.

tim

[Fred Bloggs]

Sorry, but IMO your biggest and most expensive problem is your "accountants". If I were you I'd switch to a "proper" accountancy company rather than an expensive ex-MSC provider. HTH.

[cz61]

Hi can anyone shed any light on re-imbursement of expenses from Brookson.

I have a Ltd Company through Brookson and have just started claiming expenses, the following is an example of 2 week invoices I submitted and subsequent payment.

Week 1 40 hours worked, no expenses
Funds available to take was approx £700.0.

Week 2 40 hours worked, expenses claimed £260.0
Funds avilable to take was £754.0
I don't fully understand the working of this but it appears to me I am not getting back the money I fork out, (i.e shortfall of £190.) I emailed Brookson and they said its to do with tax relief.

"The Revenue only gives you 21% of the net value of your expenses.
21% of your expenses at £259.84 is £54.5664 (this is the difference)"

The statement shows the £260.0 as being included in the funds available but the dividend is greatly reduced.

Can anyone tell me if this correct or am I not understanding the workings of the expenses and will I retrive the money through less tax.
Would appreciate any advice.

Chaz