Provided that IR35 is not an issue, he can generally reclaim any expenses from his limited company (and reimburse himself accordingly) The expenses will reduce the company's corporation tax, as part of the company's annual corporation tax return. Capital Gains Tax has nothing to do with this, by the way. It's not offset against PAYE either.
He would normally pay himself a salary through your company under PAYE and you would be best to apply for a P11D dispensation to minimise the additional reporting around expenses and benefits.
(Running your own limited company is a bit different to using an Umbrella company)
-- Edited by Figurate on Monday 30th of April 2012 09:16:46 PM
-- Edited by Figurate on Monday 30th of April 2012 09:20:16 PM
Hi - We run our own business and my husband is a Director of that business. He runs his own car (not company car) on business, about 270 miles per week. He also has subsistence expenses and some other minor expenses like laundering costs.
When he worked for an umbrella company, he would put his mileage in every week, of which .45p per mile and record how many meals he was entitled to based on his long working days. They would then tally this up and it would be offset against the PAYE tax he would pay.
Now we are Ltd, we don't know how this should be dealt with. My husband seems to think he can bill the business for the expenses to be paid in full - I think he can only record them so that they are offset against either PAYE or capital gains tax. We have Quickbooks in which to do this.
So is a a full reimbursement or recorded through payroll somehow . . . .
Your husband can reimburse himself from the company at a rate of 45p per mile for the first 10k miles and 25p per mile thereafter.
There is actually no meal entitlement no matter how long the day is. To paraphrase HMRC to eat to live terefore such expense is not incurred wholly, necessarily and exclusively for the purpose of work and is not an allowable expense.
The unbrella company would have been able to pay the meal allowance if they had a special dispensation from HMRC but it's not normal except for some very specific cases such as the exception for long distance lorry drivers where breaks are compulsary.
Other expenses other than mileage such as necessary hotel accomodation should generally be paid through the company rather than paid by your husband and then reimbursed.
Hope that helps,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Think our posts are pretty complimentary this time though rather than saying the same thing.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
My husband is a lorry driver and has been told he can claim for meals (up to two a day £5 for each depending how many hours he works in a day) laundering of his uniform at £!.65 per week and mileage (he contracts for different companies) at the rates you mentioned above.
The accountant has told him to pay for his food with the business bank card and claim the rest through expenses and told him to pay himself a little over the minimum wage £8105 or whatever it is now to compensate . . . .
