Tax/Contracting Q: is it better for me to claim expenses through my ltd co than through my own funds?

Question

Tax/Contracting Q: is it better for me to claim expenses through my ltd co than through my own funds?

Answer 1

I'm not sure what you mean here .. plainly if the expenses are 'real' costs then you are entitled to have them reimbursed by the 'customer' ..

If the costs relate to a specific contract/work package then they are charged to that 'deal', otherwise 'general costs' (eg. cost of petrol incurred visiting potential clients etc).

Reimbursement of genuine business costs is not taxable income (so will not be liable to personal tax) and are a business expense, so are deducted from business profits before paying company tax ..

What is (and what is not) an allowable business expense does have some 'grey areas' (check out on line guides or ask your accountant), and there is always the vexed question of VAT (check HMRC guidelines)