Reply to: Random/lesser known expenses that can be put through your limited...

[TheFaQQer]

I thought I read the work was sub-contracted - so these coders aren't employees, but contracted suppliers? I which case why not get the supply of pizza worked into their contracts - they buy their own pizza, and bill you for it along with their usual hourly/day rate.

Surely even in that case, they would still be a taxable benefit, since their employer is providing the pizza?

For the sake of a couple of quid, is it really worth arsing about with this, though??

[Greg@CapitalCity]

It's claimable. Whether it needs to be declared as a BIK for the employees, is a different matter. So your "generosity" could help increase their tax burden.

I thought I read the work was sub-contracted - so these coders aren't employees, but contracted suppliers? I which case why not get the supply of pizza worked into their contracts - they buy their own pizza, and bill you for it along with their usual hourly/day rate.

[SueEllen]

It's claimable.

Whether it needs to be declared as a BIK for the employees, is a different matter. So your "generosity" could help increase their tax burden.

Some years back, a large software company that I know, gave a long-term reward of an expensive pen every five years. In some countries, the local office paid the taxable benefit for the employee so it was a real gift. In others, they didn't - the Swedish lot weren't too impressed that a "gift" from the company, that they didn't really want, cost them money.

I know in some of the Nordic countries the tax laws are such that even if the employer wanted to pay the employees taxable benefit on the gift or any other benefit, they legally can't.

It's a case of checking the tax laws throughly before being "nice" to employees.

[NotAllThere]

Ok ok! Wrong forum, I get it! Jeeeeeezzzzzz

Not any more.

[craig1]

Can we have a slight reality check here...

You can expense anything you like. The actual question you should be asking is nothing to do with YourCo but with your personal taxation: "Does this expense claim give rise to a BIK?". Which it will if the expense is not wholly and exclusively for the needs of the business. Plus, of course, you do actually have to spend the money in the first palce.

As for what's the worst that can happen, I think the term for tax evasion still starts at repaying the tax, interest and penalties plus a big fine and/or two years. Still want that tiger?

The wholly and exclusively test can be a bit misleading though, it's about significant use for many items, see the examples here for instances where a BIK claim isn't raised despite there being substantially more private use than business.

It's no wonder so many accountants and tax lawyers are kept in gainful employment!

[TheFaQQer]

The pizza is an investment to get them to work harder not an expense .

No - it's a rapidly depreciating asset.

[TheFaQQer]

That made me think - if I have a software company and I buy some pizza for my coders staying late, surely I should be able to claim that?

The reason I am asking is as I subcontract more and more of my work, I really starts to look more like a software house rather than a one-man Ltd, which Ithink is great, but generally I should be able to claim more somehow, right?

It's claimable.

Whether it needs to be declared as a BIK for the employees, is a different matter. So your "generosity" could help increase their tax burden.

Some years back, a large software company that I know, gave a long-term reward of an expensive pen every five years. In some countries, the local office paid the taxable benefit for the employee so it was a real gift. In others, they didn't - the Swedish lot weren't too impressed that a "gift" from the company, that they didn't really want, cost them money.

[northernladuk]

That made me think - if I have a software company and I buy some pizza for my coders staying late, surely I should be able to claim that?

The reason I am asking is as I subcontract more and more of my work, I really starts to look more like a software house rather than a one-man Ltd, which Ithink is great, but generally I should be able to claim more somehow, right?

The pizza is an investment to get them to work harder not an expense . Is it worth claiming pizzas btw? You only save 20% of the cost. Is it worth pushing the bourndries for a couple of quid? Get the company to buy it as entertainment so it doesn't come out of your pocket so you get more from your divis?

[yasockie]

That made me think - if I have a software company and I buy some pizza for my coders staying late, surely I should be able to claim that?

The reason I am asking is as I subcontract more and more of my work, I really starts to look more like a software house rather than a one-man Ltd, which Ithink is great, but generally I should be able to claim more somehow, right?

[malvolio]

Can we have a slight reality check here...

You can expense anything you like. The actual question you should be asking is nothing to do with YourCo but with your personal taxation: "Does this expense claim give rise to a BIK?". Which it will if the expense is not wholly and exclusively for the needs of the business. Plus, of course, you do actually have to spend the money in the first palce.

As for what's the worst that can happen, I think the term for tax evasion still starts at repaying the tax, interest and penalties plus a big fine and/or two years. Still want that tiger?

[MCC7]

If you got a receipt for anything at all just stick it in. Hell the worst they can do is make you pay it back IF they catch you...

That do?

Right, chinese reciept for pet tiger is going in...business mascot?

[northernladuk]

If you got a receipt for anything at all just stick it in. Hell the worst they can do is make you pay it back IF they catch you...

That do?

[MarillionFan]

NL.

Can you do a summary of your post please?

[northernladuk]

A quick google finds..


Expense Conditions of claim Further reading
Accountancy All fees including advice pre company incorporation Further Reading
Accommodation Hotel, B&B, meals included Further reading
Advertising Allowable
Air fares Exception of 1st class as it is an unnecessary cost
Annual company fee Allowable un-receipted
Bad debts Once the debt is 6 or more months unpaid, VAT needs adding back to output tax if not cash accounting or flat rate scheme
Bank charges Allowable un-receipted
Bicycles and related costs Allowable Further reading
Broadband internet Allowable but conditions have to be met Further reading
Business (corporate) gifts Maximum of £50 in a 12 month period and can be verified for advertising purposes. Food, alcohol and tobacco do not qualify Further Reading
Business start-up Incorporation fees, VAT, PAYE and CT registration fees, accountancy advice, lawyers advice/contracts drawn up
Capital allowances Depreciation on assets
Car hire Proportionate if there is an element of personal use
Childcare vouchers Allowable Further reading
Christmas gifts Need 2 or more employees other than just Director to qualify, gift over £50 is a P11d expense and alcohol, food and tobacco do not qualify
Charitable donations Claimable as long as it does not put the company in a loss making position
Clothing Where it can be classified as a uniform and not used for personal use
Computer equipment Under the net value of £500 otherwise will need to be written onto the balance sheet as an asset
Company formation fee Allowable
Conference expenses Allowable
Depreciation On assets above £500 net value, either straight line or reducing balance
Director’s salary Allowable Further reading
Dues to professional bodies Have to be approved on HMRC list Further reading
Entertainment Conditions apply Further reading
Eye test When you are required to work with a VDU to perform the company duties Further reading
Foreign exchange costs Costs of converting foreign invoiced revenue back to sterling for UK companies
Health check BUPA and other annual screening check for director or employees
Hire and rental charges Allowable
Hire purchase Agreement must be in company name
Home working expenses Conditions apply Further reading
Insurance Office contents, Employers liability, Executive income protection, Key man life, Jury service, Motor, Tax investigation, Permanent & private health, Professional indemnity, Public liability
Interest on business loans Loan in the company name
Key man life insurance Allowable
Leasing rental Must be in company name
Legal costs Breaches of law and penalty payments are not allowable
Magazines and Books Generally no VAT to reclaim Further reading
Marketing costs Allowable
Medical insurance Foreign contracts only otherwise a P11s expense
Medical treatment Only when on business abroad otherwise a duality of purpose exists
Mileage Under approved mileage allowance (AMAPs) Further reading
Mobile telephones Conditions apply Further reading
Motor vehicles Company owned, costs with the exception of improvement are allowable
National insurance contributions Allowable, not class 1a
Office rental Allowable
Parking Allowable, £5 daily for un-receipted
Patent costs Allowable
Pensions provided to employees Allowable but advisable to seek professional advice from an independent advisor
Postage No VAT reclaimable
Professional fees Allowable as long as not a breach of the law
Printing Allowable
Property rental Apportion where private element
Repairs to equipment Allowable
Salaries and wages Allowable
Software Allowable, unlike a capital expense, if the value exceeds £500 net, it is still accounted for in the profit and loss account.
Sponsorship Allowable when given freely (not expecting anything in return) no VAT needs to be charged.
Stationery Allowable
Subsistence Allowable with exception of the 24 month rule Further reading
Taxi fares ‘Adequate’ fares are allowable, a limousine is non-allowable
Telephone Proportional if not in the business name
Training courses Must be relevant to the nature of the business
Training manuals or books Allowable when specific to business
Travel Where approved schemes are applied, no benefit in kind charge Further reading
Use of home as office £3 weekly HMRC approved

[MCC7]

Yes it is £150 pounds. It was covered in a thread the other day so should be still on the first few pages below this.. Oh no it won't ... that is because that was posted in the correct forum which was accounting!!!

Can't do uniforms unless it has co name on it or is a proper uniform. Suit's shirts and anything you might get away with wearing in public will not work...

There are many many many expenses threads on here and they have covered just about everything you can possibly think of, from cctv cameras on your home to cars, boats etc..

Try this in google : expenses Site:forums.contractoruk.com
or try the advanced search looking in the ACCOUNTING!!!!! forum with the word expenses in the title.

Your accountant should have a pack that covers this off if he is a contractor specialist. SJD had a very comprehensive list as well.

Ok ok! Wrong forum, I get it! Jeeeeeezzzzzz