If you are a professional contractor, at some stage you may need to invest in marketing for your business. Can these costs be offset against your company’s tax bill?
Limited Company Contractor Expenses
- As a contractor, you may incur a number of 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'.
- Umbrella contractors can typically reclaim a number of expenses, although the treatment of expenses claims does vary between providers.
- Start with our popular guide to limited company expenses.
Umbrella company expenses – what can you claim for?
If you work via an umbrella, you may incur various expenses while carrying out your work. Here, we look at how expenses are treated for tax purposes.
Can I fund childcare costs via my limited company?
If you are contracting and have young children, you may be able to benefit from personal tax relief on some childcare costs. The old voucher scheme was closed to new entrants in 2018.
Are the costs of eye tests and corrective glasses tax deductible expenses?
Most contractors spend a lot of time behind computer screens. Can your company claim for the cost of an employee’s eye test? What about corrective glasses?
Claiming back pre-trading expenses from your company – the basics
How to claim back the costs of pre-trading expenses you have paid for personally, on behalf of your limited company, including how VAT can be reclaimed, subject to specific time limits.
Claiming expenses – how professional memberships and subscriptions are treated
How are subscriptions to professional and trade organisations treated for tax purposes? And what determines whether or not your membership of a particular organisation is tax-deductible?
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?
Contractor travel expenses – what are the 24 month (and 40%) rules?
Many contractors travel from home to a temporary workplace. You should be aware of the 24 month rule which determines whether or not you can legitimately claim any travel costs.
Is work clothing an allowable limited company expense?
Limited company owners cannot offset the cost of standard work clothes against tax, although there are some interesting exceptions. Here we look at how HMRC treats clothing 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. So, how do you ensure that these expenses remain tax-deductible for your company and free of additional personal tax charges at year-end?