Expenses

As a Contractor working through your own limited company, you can claim various expenses which can be set against income for tax purposes.

HM Revenue and Customs do require you to be able to provide evidence of any expenses and they must be for the purpose of running your business. Typical areas you can claim for include:

• Travel Costs - the cost of getting to and from your temporary place of work in line with HM Revenue & Customs guidelines. Currently these are 40p per mile for the first 10,000 miles in a financial year and 25p per mile thereafter. Being a passenger in a car means you can claim 5p per mile and you can claim 24p per mile if you travel by motorcycle and 20p per mile by bicycle. You can also claim for parking, congestion charges and the cost of travel by public transport but you will require receipts for these.
• Subsistence - meals and hotel costs if you are working at a temporary place of work.
• Pension contributions - contributions paid by the company as an employer provide better tax and National Insurance advantages than extracting money from the company and making contributions personally.
• Administration costs - the costs of running a business such as phone calls, postage and stationery can all be claimed, as can any accountancy fees.
• Training - can be claimed providing it is contracted for by the company.
  

Monahans have a dedicated team of specialists looking after the affairs of Contractors and can advise on all aspects of becoming a Contractor. Or if you are already a Contractor and need an Accountant to help you manage your affairs as efficiently and profitably as possible, we have the knowledge and expertise to do just that.

Contact our Contractor Team via this link if you would like a friendly chat about how we could help you.

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