Reply to: Possibly stupid question about Ltd Co. income after tax but I've got to ask anyway

[Clare@InTouch]

Could you please explain the calculation? Here's mine: 15000 - 5715 = 9285 * 0.128 =1188.48 & 15000 - 1188.48 = 13811.52

Assuming the £15,000 is gross, you work backwards. £13,946 - £5,715 = £8,231. £8,231 x 12.8% = £1,053.
Employers NI is £1,053 plus net salary £13,946 = total gross £15,000.


The net salary of £11,547 is from a gross of £13,946:

£13,946 - £6,475 = tax at 20% £1,494
£13,946 - £5,715 = NI of 11% £905

£13,946 - £1,494 - £905 = £11,547

[MarillionFan]

Almost nobody on CUK is self-employed.

That sounds like us, then.

Good-oh. So we can claim for lunch.

I must be almost nobody!

I run as Director of two Ltd companies, plus self employed. The combination for offsetting tax is fantastic.

[explorer]

3. You have not mentioned the employer's NIC (paid at 12.8% on salary over £5715) but I assume this is included in the £15,000 leaving a gross salary of £13,946

Could you please explain the calculation? Here's mine: 15000 - 5715 = 9285 * 0.128 =1188.48 & 15000 - 1188.48 = 13811.52

7. The net income from the salary assuming a 647L tax code would be £11,546

Once again, please could you elaborate on that?
Ta

[Olly]

so what was all the storm in a tea cup about?

Like mr d. head. I've always claimed lunches first under a brolly and since I've been a Ltd.

I don't know if we've done a poll before but I'm guessing what...85% of people on here are either brolly or Ltd. and do contracts, one at a time, all over the places and for different agencies /end clients each time.

[Clare@InTouch]

Almost nobody on CUK is self-employed.

That sounds like us, then.

Good-oh. So we can claim for lunch.

Aye.

You can claim for lunch if you're out on business for the day, to a temporary workplace.

You can claim for breakfast if you have an unusual early start, or you cycle to work.

You can claim for dinner if you have an unusual late finish.

[RichardCranium]

You cannot claim if you're self employed

Almost nobody on CUK is self-employed.

If you're an employee travelling to a non-perm workplace

That sounds like us, then.

You can get tax relief on the necessary costs of business travel like:

•meals

Good-oh. So we can claim for lunch.

[Clare@InTouch]

Reaaaaaaaaaaalllllllllllllly ?

I missed that one...been claiming lunches since day one, account is cool with it.

Do you have the links? I searched but did not find

You cannot claim if you're self employed, as the link from Sue Ellen correctly states.

If you're an employee travelling to a non-perm workplace then you can though:

You can only get tax relief on the cost of business journeys. These are when, as part of your job:

•you have to travel from one workplace to another - this includes travelling between your main 'permanent workplace' and a temporary workplace
•you've got to travel to or from a certain workplace because your job requires you to


Travel expenses that qualify for relief
You can get tax relief on the necessary costs of business travel like:

•public transport fares
•hotel accommodation
•meals
•tolls
•congestion charges
•parking fees
•business phone calls, fax or photocopying costs


HM Revenue & Customs: Tax relief for travel and subsistence

[7of9]

And I will suspect it will be covered again; I have claimed lunch every working day for the entire time I've been contracting. The only thing that has changed is that since I went brolly, I have to keep the receipts instead of charging a flat rate for Luncheon Vouchers.

I got all the receipts for my lunch, but I am not sure I want to put it down as expense. I have asked different high street accountants. The majority said no. However, most online contractor accountants said yes.

[SueEllen]

Due to the number of "My lunch" threads I've just used google -

HMRC - Wholly & exclusively: duality of, or non-trade, purpose: non travel topics: subsistence is the one you want to read.

A few of the accountants who post on here have also made it clear that if your normal work day on a client site is 12 hours then you can't claim for another meal i.e. breakfast, dinner either. However if you irregularly work 12 hours you can claim that extra meal.

[Olly]

BTW you shouldn't claim for lunch unless you are working aboard as everyone has to eat. It's been covered before.

Reaaaaaaaaaaalllllllllllllly ?

I missed that one...been claiming lunches since day one, account is cool with it.

Do you have the links? I searched but did not find

[RichardCranium]

BTW you shouldn't claim for lunch unless you are working aboard as everyone has to eat. It's been covered before.

And I will suspect it will be covered again; I have claimed lunch every working day for the entire time I've been contracting. The only thing that has changed is that since I went brolly, I have to keep the receipts instead of charging a flat rate for Luncheon Vouchers.

[SueEllen]

Expenses are difficult to estimate. If your expenses are high you can obviously have better take home rate. But it has to be legitimate and you need keep the recipes. My accountant told me I can claim lunch as expenses. I am not so sure.

HMRC have some "very nice" leaflets you can read on what you can and can't claim as expenses -

Off my head google for "HMRC 490" and "HMRC 480" You will find they are very clear and well written

Once you have digested them without falling asleep (or losing the will to live) use the search function on this board to read a discussion you understand on the various issues.

BTW you shouldn't claim for lunch unless you are working aboard as everyone has to eat. It's been covered before.

[7of9]

Expenses are difficult to estimate. If your expenses are high you can obviously have better take home rate. But it has to be legitimate and you need keep the receipts . My accountant told me I can claim lunch as expenses. I am not so sure.

[ChimpMaster]

Thanks Craig, Alan, and all. I was going through my CT600 calculation and just wondering what my return would be and was confusing myself senseless with the numbers (my actual figures are obviously different to those in the example!).

[Fred Bloggs]

Thank you Alan, a good and clear explanation.