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Expenses Guidelines

Expenses Guidelines OASIS ACCOUNTANTS “What expenses can I claim?” is one of the most commonly asked

OASIS

ACCOUNTANTS

“What expenses can I claim?” is one of the most commonly asked questions by new directors of limited companies.

Here at Oasis Accountants Limited we want to give you as much guidance and advice as we can in regards to claiming expenses. We understand that there can be a range of expenses that our clients wish to claim so we have compiled a short guide providing examples of the types of expenses that could be claimed with the right reason.

The information in this guide is intended to provide general information and is not an exhaustive list of expenses that can be claimed or not claimed.

Travel

Mileage for privately owned vehicles:

o

Cars - Claimed at 45p per mile for the first 10,000 miles in each tax year, then 25p per mile thereafter.

o

Motor cycle - Claimed at 24p per mile.

o

(Push) Bicycles - Claimed at 20p per mile.

Public transport:

o Buses, trains, tube, taxi, planes, ferries and trams (etc) can be claimed.

Please note that the 24 month rule applies to travel expenses. Please see HMRC website for further details on the 24 month rule.

Mobile telephone

o

One mobile telephone purchased in the company name is allowable per employee. Your company name must be displayed on the mobile telephone bill that is being claimed if you wish to claim the line rental along with the calls, SMS and data that you use.

o

If your mobile telephone bill does not display your company’s name, you should only claim the individual call costs that were related to your business.

OASIS ACCOUNTANTS LIMITED Chartered Certified Accounts

Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA T: 02031293216 | F: 02071832659 | M: 07944334262 E: Shankar@oasisaccountants.co.uk

Internet / Broadband

Internet / Broadband OASIS ACCOUNTANTS o You can claim the full cost of your internet connection

OASIS

ACCOUNTANTS

o

You can claim the full cost of your internet connection if the contract is in your company’s name and your private use is not significant.

o

If the contract is in your personal name, a percentage of the bill based on the actual business use is claimable.

Training

o

Training should be paid from your business bank account and the receipt must display your company’s name.

o

Training is only allowable when it is in relation to your current job, improving the skills you possess and to assist you in your day to day work.

Home office

o You can claim a flat rate of £4 per week when carrying out the majority of your working duties from your home.

Temporary accommodation

o

If you have a business requirement to stay in temporary accommodation i.e. Hotel or Bed and Breakfast, the cost of the accommodation on nights prior to work can be claimed. While in temporary accommodation (only) you can also claim for food and (non-alcoholic) drink.

o

If you’re renting a second property, or just a room (which isn’t your main

residence

and is not where your company

is registered)

to

be

near your

temporary place of work, the cost of the rental can be claimed. 5/7 th of the costs are normally claimed assuming that you work a 5 day week.

o

You could also claim £5 per night for Personal Incidental Expenses (PIE’s) when in the UK or £10 per night when outside the UK which is in addition to the above.

OASIS ACCOUNTANTS LIMITED Chartered Certified Accounts

Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA T: 02031293216 | F: 02071832659 | M: 07944334262 E: Shankar@oasisaccountants.co.uk

OASIS ACCOUNTANTS Hardware, software, Peripherals and Equipment o Receipts for computer equipment should display your

OASIS

ACCOUNTANTS

Hardware, software, Peripherals and Equipment

o Receipts for computer equipment should display your company’s name.

Christmas / Annual Party

o A maximum of £150 can be claimed per employee, per year.

Pension contributions

o

Personal pension contributions are allowable up to a maximum of 100% of your salary per year.

o

Company pension contributions into a personal pension are allowable up to a possible maximum of £50,000 per year (2013/14). It is recommended that further advice should be taken from an Independent Financial Advisor.

Accountancy Fees

We will automatically offset our accountancy fees against tax for you. You will see the fee and tax saving on one remittance per month. Therefore, you do not need to put in a separate expense claim for this.

OASIS ACCOUNTANTS LIMITED Chartered Certified Accounts

Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA T: 02031293216 | F: 02071832659 | M: 07944334262 E: Shankar@oasisaccountants.co.uk

Childcare costs

Childcare costs OASIS ACCOUNTANTS o Costs up to certain limits are allowable and should be paid

OASIS

ACCOUNTANTS

o

Costs up to certain limits are allowable and should be paid directly from your business bank account to a registered childcare provider or nursery.

o

Your company can only make a claim for child care costs if they are paid to a registered childcare provider or nursery.

o

In 2013/14, these are £55 per week for a basic rate taxpayer, £28 per week for a higher rate taxpayer and £25 per week for a for additional rate earner. You should pay any costs above these limits personally to avoid a benefit in kind arising.

Technical Books

o Technical books used specifically for your business and work are tax deductible. The books must be in relation to the work you provide through your company.

Company Charitable Donations

o

Companies can receive tax relief on gifts of money to charities.

o

For the relief to qualify the payment has to be made to a registered charity.

HMRC has published its charity list here:

http://www.hmrc.gov.uk/charities/charities-search.htm

o

Gifts of money made to a charity by your company should be paid gross - before tax is deducted. These donations are deductible from the total profits of your business when calculating Corporation Tax and are recorded in the Corporation Tax Return (CT600).

OASIS ACCOUNTANTS LIMITED Chartered Certified Accounts

Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA T: 02031293216 | F: 02071832659 | M: 07944334262 E: Shankar@oasisaccountants.co.uk

OASIS ACCOUNTANTS   Others o Stationery o Professional subscriptions (must be specified on HMRC’s

OASIS

ACCOUNTANTS

 

Others

o

Stationery

o

Professional subscriptions (must be specified on HMRC’s List 3’)

o

Professional Indemnity, liability and IR35 insurance

o

Safety clothing (hard hat, steel toe cap boots etc)

Expenses that cannot be claimed

o

Daily food expenses (except for evening meals when staying away for business)

o

Alcohol

o

Clothes (Suits, shirts, shoes etc)

o

Entertaining

o

Private health insurance

o

Mortgage costs

o

Scholarships

o

PCG (Professional Contractors group) membership

Please be aware that Oasis Accountants Limited does not require you to send us your receipts (or copies). However, you must keep all original expense receipts and invoices at the registered address of your company for 7 years.

If you send receipts to Oasis Accountants Limited they will have to be returned, to which we will not be held responsible for any receipts lost in the post.

VAT – If you want to reclaim VAT from an expense, the receipt must be in your company’s name. VAT cannot be claimed back from expenses if your company is registered on the Flat Rate Scheme (Horizon).

Please be advised that the content of this document should only to be used as a guide. Information in this guide is intended to provide general information and is not an

OASIS ACCOUNTANTS LIMITED Chartered Certified Accounts

Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA T: 02031293216 | F: 02071832659 | M: 07944334262 E: Shankar@oasisaccountants.co.uk

OASIS ACCOUNTANTS exhaustive list of expenses that can be claimed or not claimed. All of

OASIS

ACCOUNTANTS

exhaustive list of expenses that can be claimed or not claimed. All of the business expenses that you claim against tax must be ‘Wholly, exclusively and necessarily’ in relation to your business. If you claim back expenses that are questioned by HMRC Oasis Accountants Limited will not hold any responsibility. You are solely responsible to ensure the expenses that you claim are legitimate business expenses.

Expenses related to a temporary work site must adhere to the 24 month rule. In short as soon as you know you’ll work on one work site for 24 months or greater you cannot claim back expenses relating to that work site. For further information you can visit www.HMRC.gov.uk.

If you would like our opinion on whether you can claim for a certain expense, please contact us first on 02031293216.

Do I need to keep receipts?

Yes, you are required to keep your receipts at the registered address of your limited company for up to 7 years.

It is not a requirement to send Oasis Accountants Limited your receipts. To reduce the administration for you we will accept expense claims on the template we provide as long as everything has been filled out correctly. We will process your expenses in the knowledge that you have the receipts.

Please note about expenses

The expenses guidelines is a guide for limited companies operating outside IR35, if you operate inside IR35 there is an alternative guide, please contact our payroll team on support@oasisaccountants.co.uk or call on 02031293216.

The expenses claimed must be a true record of your business expenses.

OASIS ACCOUNTANTS LIMITED Chartered Certified Accounts

Building 3 Chiswick Park,566 Chiswick High Road,London,W4 5YA T: 02031293216 | F: 02071832659 | M: 07944334262 E: Shankar@oasisaccountants.co.uk