Reply to: Ltd Company Set up, and Nearly Starting

[northernladuk]

Lol, whell actually my very professional accountant OFA (Online & Forum Accountants) advises that training costs for skills directly related to your business is acceptable e.g. I specialise in Business Intelligence so any courses related to my specific specialism is fine although within IT you could easily argue about other areas which may interact with your specialism. But don't try to claim for a training course on Bee Keeping or some such!! Unless of course you are are clever enough to argue that Bee Keeping will provide you with some management skills!!!

That is TF's exact point. They aren't easily arguable. They are either directly related to your business or they are not. Doing some training in another technology that you do not use to try branching out would not. There are degrees of risky here but to use a blanket comment is not correct. I think the problem word you use here is 'may'

Training has been discussed in great lenghts in other threads so don't want to take this off topic

[ASB]

You can claim the cost of a yearly staff function where you can spend up to £150 per person.

I beleive it can be any number of events (though that doesn't improve the total amount claimable).

HM Revenue & Customs: Social functions for employees, including annual parties
EIM21691 - Particular benefits: annual parties and other social functions: examples

[dyven]

Watch that one - there's a few rules to be careful about whether it's claimable or not, depending on the training you are doing and what your skills are.

What does your accountant say about claiming training costs?

Lol, whell actually my very professional accountant OFA (Online & Forum Accountants) advises that training costs for skills directly related to your business is acceptable e.g. I specialise in Business Intelligence so any courses related to my specific specialism is fine although within IT you could easily argue about other areas which may interact with your specialism. But don't try to claim for a training course on Bee Keeping or some such!! Unless of course you are are clever enough to argue that Bee Keeping will provide you with some management skills!!!

[Contreras]

Unless you already know everything, buy the latest version of Finance on a Beermat: Amazon.co.uk: Mike Southon, Chris West, Stephen King, Jeff Macklin: Books

That will tell you what you need to know re Corp tax (don't spend it, it's not yours. etc)

Looks like dyven bought the last remaining Amazon copy.

Just had a look at this with a view to getting a copy myself, the one mentioned by Cojak is published 2006, but there's also a later edition published 2008. Will probably go for the later edition but I noticed that one of the original authors (Mike Southon) is no longer credited as co-author, which seems a bit odd.

[TheFaQQer]

• Training Courses & Exam Certification

Watch that one - there's a few rules to be careful about whether it's claimable or not, depending on the training you are doing and what your skills are.

What does your accountant say about claiming training costs?

[northernladuk]

Hi All,

<stuff that is in newbie guides>

Thanks in advance

You know a good accountant can proactively advise you of all this so saving you money above and beyond his charges.

[Clare@InTouch]

The incorporation fee can be claimed, but must be added back in your CT comp. You also cannot claim any VAT on it.

Use of home is now £4 a week.



From an expenses point of view you can claim anything that you need in order to run the business. If there’s a personal benefit there will likely be a personal tax implication, and reporting on a P11D. Some ideas of expenses:

Eye tests
Computer equipment
Postage & stationery
Books & technical manuals
Professional subscriptions
Insurances – professional indemnity, public liability
Travel to the client site – but do not claim petrol, that’s covered in mileage
Lunch, if you’re out on business all day (not packed lunch)
Breakfast if you have an unusual early start
Dinner if you have an unusual late finish

If you’re staying overnight you can claim the cost of accommodation, plus a round £5 overnight allowance. £10 a night if its abroad.

You can claim the cost of a yearly staff function where you can spend up to £150 per person.

There are other items you can pay for through the company, but they should come direct from the bank itself, not be expenses claimed:

The cost of your mobile 'phone if you get the contract swapped into the company name
Contributions into your personal pension
Payments for a registered childminder – up to £55 a week if you're a basic rate taxpayer (ignoring dividends)

Some rules are odd, so if there's anything else you're not sure of just ask

[dyven]

Hi All,

Thanks for your advices to date. It doesnt seem as scary making the move into contracting when there's a load of you contracting out there in the real world.

Think the most cost effective option was to take the PCG PLus Membership for £220 which seems like a good deal with a lot thrown in alongside the qdosconsulting Proffesional Indemnity Insurance for £147.

Only one think left for me to think about is what expenses I will be claiming and what is allowable, my registered address is from home, and am setting up a home office, desk etc as I will need to work from home now and then.

So I am thinking allowable expenses will be:

• New Laptop and Printer
• Company Stationary
• Company Formation Charges
• Any Applicable Accountancy Charges
• PCG Membership and QDOS Professional Indemnity
• Mileage at approved rates (45p a mile) to/from my client site
• Banking Charges
• Training Courses & Exam Certification
• Company Website Design/Hosting/Domain Name registration

Are there any other expenses I can claim, I read about claiming for meals whilst your on clients site but Ill be there pretty much for 6 months on my first gig and it will be good old home made packed lunches most of the time, Will I be able to claim the odd trip to the chippy or the sandwich shop when the lunch box isnt tagging along with me. Or can claim a nominal amount for unreciepted lunch expenses.

And what are HMRC like at the moment in respect of claiming for expenses for your home office I read somewhere about something notional about £3 a week, is this right or was this a typo?

Finally which one of the above expenses will give rise to the submission of the P11d

Thanks in advance

[Kugel]

Still to do:
• Awaiting UTR from HMRC Via companies house (which should be automatic I think) so I can register with:
• HMRC for Corporation TAX, Flat Rate VAT, and PAYE.
• Sign up with PCG including Professional Indemnity Insurance (Or will I be better off getting this from a separate broker!!)

Before registering for PAYE make sure it makes sense to do it this tax year.

Get a quote from QDOS for Professional Indemnity Insurance. They seem to be cheapest at the moment.

[Platypus]

You are running a business now. Don't involve your family and just do it properly. They don't know your business to the level they should and can't give you the impartial advice you need. Maybe in future years this could be a way for you but not at start up. You need solid support or it is going to cost you.

Humm, culturally we may be alone in this. Networking with family doesn't seem to have done the large number of Asian and Chinese run family businesses any harm. I can't agree with you you, NLUK, on this point. Especially as many accountants don't have a clue about business.

Having said that, personally I wouldn't have someone in the family do my accounts as I prefer to keep financial details confidential.

[scooby]

In my opinion cloud accounting is pointless. Because none of current providers do annual accounts. And over a few years you will end up paying fortune.

I recommend free "Basic PAYE tools 2012" from HMRC for payroll.

And get "DIY accounting" for £16.99 + VAT (or £26.99 + VAT with payroll) for your day to day accounting and annual accounts. You will need to buy a new one every year, but it is very cheap.

Also Crunch now provides free cloud accounting (with somewhat limited functionality). You can also give it a try.

Dont forget to give us your name so you can get £25 referral!!

[Kugel]

In my opinion cloud accounting is pointless. Because none of current providers do annual accounts. And over a few years you will end up paying fortune.

I recommend free "Basic PAYE tools 2012" from HMRC for payroll.

And get "DIY accounting" for £16.99 + VAT (or £26.99 + VAT with payroll) for your day to day accounting and annual accounts. You will need to buy a new one every year, but it is very cheap.

Also Crunch now provides free cloud accounting (with somewhat limited functionality). You can also give it a try.

[scooby]

And I use and like FreeAgent, unless you've got macros and lookups in your Excel spreadsheet that will help with reconcilliation of invoices to income and the like.

Is FreeAgent well worth the £30pm (Incl VAT)? I'd love some software to track my bank accounts and invoicing etc, but I already pay my accountant a reasonable figure, and my invoices are done in Word...

(Queue accountant guiding me re software that may be useful as he knows I wont be getting rid of him!! )

[cojak]

thanks cojak,

book looks worth it, just bought it. hope you get your kickback

No kick back, just a satisfied reader.

And there are regulars on here who don't use accountants, so you're not alone.

Post in Accounts/Legal and they'll help, I'm sure.

(and I'd like to remind others to mind their manners in this forum)

[dyven]

thanks cojak,

book looks worth it, just bought it. hope you get your kickback

I can see that you've decided not to bother with an accountant.

Brave man.

Unless you already know everything, buy the latest version of Finance on a Beermat: Amazon.co.uk: Mike Southon, Chris West, Stephen King, Jeff Macklin: Books

That will tell you what you need to know re Corp tax (don't spend it, it's not yours. etc)

And I use and like FreeAgent, unless you've got macros and lookups in your Excel spreadsheet that will help with reconcilliation of invoices to income and the like.

But it sounds like you're on the right track.