If you are a professional operating via a Limited Company, then you may be aware that several business expenses are tax-deductible if incurred wholly and purposefully as a result of your contracting role. Common business expenses range from work equipment (laptops, stationary etc.) to travel (public transport, mileage etc.) but there are many expenses that a contractor can legitimately claim back that are less known.
Home Office Weekly Expenses
Being a Ltd Company contractor means that you are eligible to claim weekly expenses for the use of your home as an office. £4 per week can be claimed, and HMRC allow this expense without the need to retain any detailed records. The use of a home as an office expense does have certain restrictions, however, and as a contractor, you must be able to show that a large proportion of the work you carry out is spent at your home, as opposed to the vast majority being spent at your end client’s workspace.
This expense adds up to £208 per year, which may seem like small fry, but is a great example of a legitimate expense that your business can benefit from. It is worth noting that this expense is not classed as a ‘benefit in kind’, and the Revenue will not expect this to be taxed as part of your self-assessment tax return.
Home Office Expenses Support
Being able to claim expenses is something that all contractors must be aware of and understand. This advantage of being a Ltd Company contractor is something that can be utilised to a contractor’s benefit, so long as the expenses claimed for are seen to be legitimate and sincere. As a client of ours, you will benefit from unlimited support from a dedicated contractor accountant who can provide information regarding business expenses and how best to utilise your Ltd Company.
For more information, please read our comprehensive guide to expenses. Alternatively, if you have any questions regarding expenses and what you can and can’t claim, please feel free to give our team a call on 01162437868 or email via firstname.lastname@example.org
Preparing for BREXIT
Many of our clients have received communications from HMRC over the last year to assist them to prepare for BREXIT. However as this is a complex and new area, this article is designed to further help you to assess how these changes may impact both you and your business.
Further Economic Support
On Sunday 31st October 2020 the Government announced a number of updates to existing economic support measures. The full details of these measures are reported HERE (https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced ).
Updates to the Job Support Scheme
The Government has published detailed information about the scheme HERE (https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme )