Private medical insurance (PMI) covers the cost of private medical care if you become ill. For limited company directors, premiums can be paid either personally or through the company. Each option has different tax consequences.
Limited Company Contractor Expenses
- As a contractor, you may incur many expenses related to your trade.
- For limited company contractors, you can offset almost all legitimate business expenses against your company's Corporation Tax bill.
- However, if you receive any personal benefit from business expenses paid by your company, you and the company will be taxed on the value of any 'Benefits-in-Kind'.
- The SDC rules restrict the expenses available to umbrella contractors, although some expenses are still permitted.
- Start with our popular guide to limited company expenses.
Capital vs revenue expenses: what limited companies get wrong
Misclassifying capital and revenue expenses is one of the most frequent errors made by limited companies. We explain the difference and why it matters.
Dual purpose expenses explained: what limited company directors can claim
Dual purpose expenses arise where a cost benefits both the company and the director personally. Find out how HMRC treats these costs to avoid any errors.
Contractor travel expenses – what are the 24 month (and 40%) rules?
Many contractors travel to a temporary workplace. You should be aware of the 24 month rule which determines whether or not you can claim travel expenses.
Claiming phone, mobile and broadband expenses via your limited company
While working as a contractor, you may run up a number of business-related phone and broadband expenses. How do you ensure these expenses remain tax-deductible for your company and free of additional personal tax charges at year-end?
Claiming computer hardware and software expenses via your company
If you need to buy a new laptop or upgrade your PC software via your limited company, how are these expenses treated for tax purposes?
Is the cost of my smartphone (or smartwatch) an allowable limited company expense?
Almost everyone has a smartphone these days – typically using them for both personal and business purposes. With this in mind, can you legitimately claim the costs of smart devices against your limited company’s tax bill?
Claiming relocation expenses through your limited company
Moving for a new contract? Find out how your limited company can claim up to £8,000 in relocation costs tax-free, and the HMRC rules you need to meet.
Entertaining clients – can your company pay, and what’s tax-deductible?
Can you claim client entertainment through your company? This guide explains HMRC rules, VAT treatment, and what is an allowable tax-deductible expense.
Cycle to work scheme – are limited company directors eligible?
The Cycle to Work scheme is an initiative set up to promote health and reduce pollution. What are the benefits for limited companies and their employees?