What expenses can you claim in your limited company?
The main rule is “an allowable expense should be wholly, exclusively and necessarily incurred in the performance of your day to day business.” Any direct expense incurred running your business should be claimed, there are some expenses that you might think meet the criteria but are unfortunately not allowable, such as entertainment and professional attire.
If you have decided that having a limited company is how you wish to structure your business, please complete our formation form by following the link below and we can incorporate your new limited company for only £149 + VAT. If you are not sure if you want to incorporate, please contact us to discuss the merits of a limited company.
With HMRC increasing Tax Investigations, are you covered?
The current state of the UK economy has put significant pressure on HMRC to recover additional tax revenue in order to help them meet the growing deficit in the economy. Obviously, one way to achieve this goal is by carrying out additional enquiries into Tax Returns. Enquiries can be more complex than in the past and the costs of responding are consequently higher.
HMRC is keen for to make sure that your business is bona fide and not disguising an alternative scenario. IR35 is the legislation that prevents someone, who if engaged directly by their end client would ordinarily be an employee, from trading through an intermediary (limited company or partnership) to pay less Tax and National Insurance. It is worthwhile spending some time making sure you are compliant, if you don’t the unpaid tax, fines and penalties could prove a nasty shock sometime in the future.