Expenses and disbursements
Expenses and disbursements – what’s the difference? As a contractor you may incur costs in the process of supplying services to your clients. Where the costs are relevant you can pass these on by including them in your invoice. If you are VAT registered it’s important to understand the difference between HMRC’s definition of ‘expenses’ […]
Dividend declarations and vouchers – make sure you have these in order before the tax year ends
Dividend declarations and vouchers Preparing for the end of the tax year can be a stressful time for contractors. Working with a contractor accountant can help ease this as they will be able to guide and prompt you to ensure that you have all the right information to hand in readiness. If you are set […]
Getting paid when the client has gone into administration
Getting paid when the client has gone into administration Early in February IT service provider 2e2 announced that it had gone into administration. The joint administrators stated that there was literally no cash left in the company. As a result they asked the company’s Data Centre customers to contribute a total of almost £1 million […]
Staying away from home for contractors – travel and accommodation expenses
Travel and accommodation expenses Some contractors travel from home to their client’s workplace incurring UK or overseas travel and accommodation expenses in doing so. For contractors set up as a Limited Company and working outside IR35 many of these expenses will be tax deductable. What defines an allowable travel expense? Travel expense allowances are […]
The 24 month rule and how it affects contractor travel expenses
The 24 month rule and how it affects contractor travel expenses Contractors are allowed to claim travel expenses through their Limited Companies, if the travel is related to a ‘temporary workplace’, which for contractors will mean their clients’ workplace. The 24 month rule relates to the HMRC definition of a ‘temporary workplace’. If you are […]
Can Limited Company money be used to offset a personal mortgage?
Can Limited Company money be used to offset a personal mortgage? Contractors who set up as Limited Companies can end up with large sums of cash in their company bank accounts sitting there in readiness to pay tax liabilities. These deposits don’t earn much interest, so contractors often look at ways to get this money […]
Declaring dividend vouchers
Declaring dividend vouchers When I declare a dividend must I also complete the vouchers and board minutes? For tax purposes when is that dividend actually paid? Do I need to take extra care before and after the 5 April? If I change my mind or don’t have enough profits to cover a dividend how do […]
Bad debts and unpaid invoices
Bad debts and unpaid invoices If you bill via an agency what happens if the end client doesn’t pay the agency? Do you still get paid? Does the agency have to pay? The answer lies in the exact wording of the contractual agreement between you and your agency. If there is a provision within the […]
Benefits vs dividends: what’s the best option?
Benefits vs Dividends Business going well? Unsure how to reap the rewards of your hard work? Today we’re taking you through the most tax-efficient methods of extracting cash from your business. As a business owner or director, it’s understandable that you want to reap the financial rewards of your venture’s success – and do so […]