As a limited company contractor, you will be able to claim expenses for any costs that you incur as a direct result of your business. See our guidance on claiming legitimate business expenses below.
Key Points to
Limited company expenses such as for travel (mileage/public transport costs), sustenance (lunch, food or drink) and accommodation (hotels etc.) are common with contractors, but please make sure you are aware of what you can and can’t claim for.
- Throughout the duration of a contract, a freelancer/contractor will have to pay expenses, and then reimburse themselves from their limited company.
- Expenses aren’t taxed, and because of this, each expense must be justified. HMRC may take an interest in a company’s expenses, and if this is ever the case, evidence must be provided that the company actually incurred the expenses. This is usually achieved by keeping receipts and logging payments.
- HMRC state that expenses can be claimed provided they are ‘wholly and exclusively for the purposes of your business’.
- Since 6th April 2016, contractors are not be able to claim expenses relating to travel and subsistence when IR35 applies to a contract. For more information about IR35 and the legislation please see our IR35 guidance.
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Instant Expense Claims
QAccounting have developed a unique expenses app for all clients. Available on your phone or tablet the app allows clients to submit business and mileage claims on the go without having to scan in documents or fill out any paperwork.