Tax and Accounting

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The Limited Company - Expenses

The intention of this section is to highlight some areas where the contractor may be able to claim business expenses from his/her Limited Company. We prefer to err on the side of caution – it is not our job to expose our contractor clients to tax risk! It may be possible to claim some or all of the following:

Travel expenses

A worker (contractor) is deemed not to have a permanent workplace for up to 2 years and therefore it may be possible to claim the costs of travelling to the workplace.
Business mileage can be claimed at 45p per mile up to 10,000 miles and 25p per mile thereafter.
A mileage log should be maintained.


Subsistence

When working away from home an employee can claim up to £5/night for incidental expenses.
It is possible to reclaim £5 or £10 per day for meals when away from home depending on circumstances.

Telephone

Mobile phone costs can be claimed when the contract is in the company’s name.
Business calls from a home number can be charged to the company.


Use of Home as Office

You can receive £3 per week for use of home as office. It is possible to claim more as long as the claim is backed up by proper calculations (often based on floor area etc).