Expenses - car when working abroad. - Contractor UK Bulletin Board

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NotAllThere replied

9 March 2009, 17:46
Originally posted by chrisl View Post

...Now my accountants are taxing me on the money i am receiving in respect of the car and fuel expenses. ...

HMRC are your accountants?

Originally posted by chrisl View Post

When i get paid they pay my wage + re-chargeable client expenses

So it is a brolly?
Leave a comment:
blacjac replied

9 March 2009, 17:43
Erm, not it isn't....

Simplified sums:

100 worth of work, 2.50 car expenses per month = billing of 102.50 per month.

Taxable profit = 102.50 per month less expenses of 2.50 per month.

So taxable profit = 100 per month
Leave a comment:
chrisl replied

9 March 2009, 17:27
Sorry, Ltd company.

When i get paid they pay my wage + re-chargeable client expenses. Therefore, corp tax is getting applied to the whole lot.
Leave a comment:
Little'Old Me replied

9 March 2009, 16:42
Originally posted by chrisl View Post

I worked in Germany for about a year for a contact i had.
I hired a car which i needed to use for business 100% of the time. My client reimbursed my car and fuel expenses as we agreed this.

Now my accountants are taxing me on the money i am receiving in respect of the car and fuel expenses. I dont believe i should be as it was 100% business use and i had the car for business reasons.

What do you mean by "taxing me on the money" - how are they doing this?

Are you a sole trader or a Ltd Company?
Leave a comment:
chrisl started a topic Expenses - car when working abroad.

9 March 2009, 16:21
Expenses - car when working abroad.

I worked in Germany for about a year for a contact i had.
I hired a car which i needed to use for business 100% of the time. My client reimbursed my car and fuel expenses as we agreed this.

Now my accountants are taxing me on the money i am receiving in respect of the car and fuel expenses. I dont believe i should be as it was 100% business use and i had the car for business reasons.

I understand about the company car rules, but this was not a car i used personally or even had the choice in having. It was a requirment for me working whilst i was over there.

Based on the fact it was not actually a benefit to me, should i therefore not be taxed on it?
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