Types of Expenses for Umbrella and Limited Company
A lot claim that umbrella company is more tax-efficient technique of contracting as compared to setting up your own personal limited company and vice versa. In picking which is right for you, claiming expenses is simply one issue yet not truly the focal point. The very best way would be to pick the one you could possibly manage efficiently and effectively. Yet, let us take a glance at the several expenditures that could help legally lower your government tax bill.
Travel Costs
Contractors in umbrella company or own limited company can assert travel expenses back and forth temporary work place. Of the first 10,000 miles, you’ll be able to claim 45p per mile plus 25p per mile after that. Obviously, not integrated are parking and speeding penalties. You can also claim expenses when traveling by way of a public transport but make sure to hold the valid receipts.
Accommodation, Drinks and food
There are times when contractors must be out of the home for a certain length of time to accomplish the contract for the clients, or perhaps participate in a certain business affiliated training or convention. The expense of accommodation and relevant expenditures on food and drinks can be taken.
Eye Checks
If a natural part of your daily contracting work would be to face your computer or laptop monitor, you can actually claim expenditures for eye examinations. Should it be verified that you will need to have eye glasses or contacts only for work functions, then the price of purchasing one can be also part of the claimable expenditures.
Equipment
Only contractors using umbrella company are able to claim on related equipment because all those who have limited company, it would be part of the assets in the accounting document. Contractors must ascertain that the equipment is needed in the conduct of the work.
Childcare Voucher
Contractors having a limited company can claim childcare voucher in which they could receive up to £243 per month. Parents and legal guardian can avail such voucher, that is free from tax and NICs.
Home-working expenditures
Those who home based and have set aside an area as home-based office also can claim expenses. For example, those contractors who operate off-site but utilize their residence base office to manage their limited company can claim £3 each week.
Cellular Phone expenses
Cellular phone expenses can only be claimed so long as the cellular phone is provided by the limited company for company use and invoices are billed to the business.
Internet Costs
Internet broadband subscription can be included in the claimable expenses if at all necessary in the execution of one’s work to consumers. However, it should be specified in the contract that there is such a need. The expenses should be under the company’s name.
Be reminded that declaring expenditures is not to avoid paying taxes. Make sure you consult your accountant when you’ve got further doubts about claiming expenses. umbrella company vs ltd company
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