These videos are very useful. I've been a LTD company director for nearly ten years as an IT Contractor. One type of expense I find very useful is the LTD Company equivalent to the Bike to Work scheme which might warrant a video of it's own. You're allowed to spend what you like on a bike, equipment, clothes etc. for transport you use for commuting which is becoming a much more popular prospect than public transport at the moment. I've been doing this for years.
Hi Darren, I think you're leaving money on the table by only claiming the statutory flat rate for use of home as office - also don't forget the trivial benefits rule of up to £300 each tax year, but otherwise not bad for someone who is not an accountant. Well done! :-)
Hi Darren. Excellent content keep up the great work. Another way of reducing taxable profits is charity donations through the limited company. You can’t give gift aid to the charity but can reduce your profits and hence your corporation tax liability. Please correct me if I’m incorrect Mohammed
Hi Darren, having just set up a LTD business in past two months, this is a great series and been really educating.. One video suggestion (if you are open to these) would be the pros and cons of VAT registering... not just because you have to (85k threshold) but say voluntary registration in the first year/ at the very outset (when you know at the end of the year you will exceed the £85k)... from my research, there isn’t much of a financial benefit.. but I’d be interested to hear your thoughts. Cheers Dan
Hi Daniel.. there is a big benefit if you SELL non VAT products / sell products with lower VAT vs purchases. an example here would be something like Mothercare. Baby clothes are 0 rated VAT. So you don't pay VAT on them but can still claim back the VAT incurred on any allowable expenses. Thus every quarter, HMRC would owe you some VAT money back. Other than that, it's just better to do when you near the threshold to avoid a hefty fine. Some suppliers do not like doing business with suppliers who are not VAT registered as they cannot then claim back some of the cost (the VAT paid), however this is made out to be a bigger thing than I believe it actually is. The videos are informative Darren, really enjoy them! Keep it up! :)
Hi Darren, Nice content. I think a small correct with reference to pre trade expenses. Its 04 yrs for Goods business and 0.6 years for Service business.
Get videos. There is one thing I always need clarification about. Considering that company profits are supposed to be used for dividends only at year's end, what should I live on? Is PAYE the only method? Currently, we tend to ignore this and pay ourselves out of PAYE and dividends anyway.
@@RS_ldn Money paid out through CCVs is tax free to you the employee but is limited to only being used for things like after school clubs, holiday camps and nurseries, etc. For the company it is a tax deductable expense. No need to pay a 3rd party to set up and administer the scheme when you can easily do it yourself. Follow the HMRC rules and limits, keep the right records, design your own voucher, keep a register of what has been issued and the registration details of child care providers you are paying.
Thank you for the clear explanation. Keep up the good work . Can you produce a video on what is claimable if one has a buy to let property (not via a Ltd)? Thanks
Very insightful video thank you. I’m a non uk resident for the last 13 years. I bought three uk properties through limited companies since 2022. As a non resident, what would be the CGT for each of these properties if I were to sell them in near future?
Hi Darren, thanks for the great content, very educational! Are you able claim the £4 a month home office reduction in corporation tax liability if you want to register the company at your accountants office in order to keep your home address private?
Hi there - great video!!! Just wondered... You say you can claim taxable expenses for up to 7 years prior to setting up the business - do these have to be in the business' name in order to count? Or by made through a specific business bank account that's assigned to the business? Reason we ask is because we've been incurring a lot of startup costs lately, but they're all in our personal name. By 'personal name' we mean the person who (once the company is set up) will be the Director. Would we still be able to claim these later down the line? Hope all of that makes sense!
That’s interesting, I was told that I could only claim up to the previous three years prior to trading, 7 would help a lot as I had some large expenses 5 years ago.
I have a question. As a limited company Director, I prefer to pay myself a smaller salary and then take dividends. Using my limited company to boost my pension contributions so that I can take full advantage of the annual pension allowance (up to £40,000). My question is, assuming £0 pension contributions from my PAYE, in order to take full advantage of the annual pension allowance means the limited company would have to pay the full £40,000 to my pension pot, and not the ‘tax relief amount' of £32,000, since the money is from the pre-tax source. Am I right?
Hi, that’s a great lecture but I’d like to know what statutory provision(s) and the particular section(s) which make the provision that cost incurred are what is “necessary, wholly and exclusively for the business”.
If you buy a car and it’s not just for business but business and home use, then it’s not exclusively for the business and can’t be claimed against tax, if you own a car already in your name for home use but use a separate vehicle for business use then that should be fully deductible against your business for tax purposes. Better still if it has your company details on it such as signage. Weather it’s a sum you pay outright (you will need to show receipts etc to show HMRC) or monthly payments if you are buying via a loan.
Nice suggestions. Does pension contribution above national 3% still qualify as being tax deductible? Say employee pays 7% and employer(business) pays 7% match?
Great video, thank you very much. Ive got question though - can you just pay with your LTD for some of your personal expenses (house rent, private school for kids etc) and claim it as taxable expenses which should be still more efficient at the corporate tax rate (and potentially no vat) than pay yourself with higher rate salary or dividends?
Hi, thanks for uploading. Still confused about 'paid by the company' for expenses? does that not just mean the director is paying for it if no employees? Like do you get the money back or just comes out your tax owed? ? Any advice be appreciated.
Thanks for amazing videos which are so helpful. Could i ask that if I pay my secretary to type letters for me on adhoc basis and she sends me invoice accordingly for varying number of hrs she has spent on typing as well as some stationery every month, could i add it as office cost or cost of sales in my accounts? Thanks
Hello enjoyed the video I am thinking with the annual mileage allowance and keeping records of mileage that would be instead of keep all the fuel recipes as you couldn't use both right
Remember that you can claim Input VAT on the fuel element of the mileage allowance using the Advisory Mileage Rates. To make the claim, HMRC will require you to keep the fuel receipts.
Many thanks for the info :) can you please explain how to pay myself as director of my ltd co.? Which form to fill and can you send links please thank you
Thank you for useful video. What about companies training? For instance for me as a coach who starting up limited company , can I put my courses and education bills as expense? Or if I want to participate in seminars that beneficial for company growth and conference expenses? Looking forward to hear from you. Kind regards, Katerina
Broadly speaking, the training course has to be relevant to the work you do in order to generate income for the company before you can claim. Training should enhance or reinforce your existing skill set, increase your competency or proficiency and help you to perform better, all to the advantage of the company. If the training can be shown to meet most, if not all, of the above criteria then under HMRC rules you can claim tax relief against the cost of the training. You’ll also be able to claim for any associated costs such as travelling expenses and accommodation. To give an example, if you run an IT company and you go on a course to learn about bitcoin, it is going to be very hard to argue to HMRC that the bitcoin course is relevant to an IT company.
Love watching your videos! . Can you please answer my question . As a director Can I pay with my personal card and get company invoice and then claim it back? My company card it’s not arrived because of the covid backlog and have to buy few things.
Do the same rules apply if not in a Ltd Co? My wife is not employed but has buy to lets in her own name and I am interested to know what expenses she can claim against. Great videos, thanks!
The following are expenses that you can claim. Letting agency fees - If you let your property through an agency, you will be able to deduct the fees charged by the letting agency. These are typically a percentage of the rental income. Advertising costs - You may advertise your property in order to find new tenants. The advertising costs are allowable business expenses and can be deducted. Accountancy costs - You may use the services of an accountant or bookkeeper. These costs are allowable costs which can be deducted. Cleaning costs - If you use the services of a cleaner, either for in tenancy cleans or end of tenancy cleans, or to clean your office premises, you can deduct the associated costs when working out your taxable rental profits. Gardening costs - If your property has a garden and you incur gardening costs, you can deduct these in calculating your taxable profits. Travel expenses - Any costs that you incur in relation to your property rental business are deductible. This will include costs of visiting the property to check the property, visit the tenants or undertake maintenance, and any other travel costs incurred wholly and exclusively for the purposes of the rental business. Repairs - You can also deduct the cost of repairs that you need to do to the property or the cost of any fixtures and fittings. Replacement domestic items - If you let a residential property furnished (other than as a furnished holiday let), you can deduct the cost of replacement domestic items, but not the cost of the original items. The deduction is capped at the cost of a like-for-like replacement. Utilities and council tax - In a residential let, the tenant will normally meet the cost of the utilities and the council tax. In a holiday let, the utility bills and council tax/business rates (where applicable) are usually met by the landlord. Costs of this nature met by the landlord are allowable business expenses. Interest and finance costs - Although residential landlords cannot deduct interest and finance costs when calculating their taxable profit, relief is available for 20% of those costs as a tax reduction. Non-residential landlords and those letting furnished holiday lets can deduct interest and finance costs in calculating their taxable profit, as can corporate landlords.
Hi. Great channel. Straightforward advice. Started my Etsy shop 6months ago. Just received a letter from the ICO re DPA fee. Could I double check with you - do I still need to pay if I’m paying Etsy fees? Do all online sellers do this? Thank you.
With the flat rate "Home Office" use, how do you run that through your company? Do you submit that as an expense (what is the evidence/receipt) and your company pays you back or is it part of payroll or something else?
I don't understand how an expense can be non-tax deductable. If I class something as an expense in my accounts, would my accounting software not automatically minus the expenses from the profits in order to provide me with a figure to calculate the amount of corporation tax I owe?
I always took it as, things like my suit is non tax deductible even though I class it as an expense. So I might take it from my profits on accounting software but my accountant will correct it
I got mixed up at this bit ' up to 7 years of pre-trading expenese can be claimed. does that mean If I start a company today and convert it to a ltd in say 4 years I can claim back anything from now?
Hi Darren can I claim back my travel money and food expenses if I'm being paid as PAYE? Also will any company accept Ltd company to work for thier any position?
Be nice claiming 45p per mile on a flight. But no, unless you're a pilot then it's just the cost of a ticket is the expense you are claiming (plus airport parking, meals during the travel etc)
Home office can be claimed as a NONE Flat rate if you work out how much of the house you use for business. This is worth way more than the shitty flat rate. You can claim this as PAYE also as well as self employed or LTD Director. The flat rate sucks.
These videos are very useful. I've been a LTD company director for nearly ten years as an IT Contractor. One type of expense I find very useful is the LTD Company equivalent to the Bike to Work scheme which might warrant a video of it's own. You're allowed to spend what you like on a bike, equipment, clothes etc. for transport you use for commuting which is becoming a much more popular prospect than public transport at the moment. I've been doing this for years.
Thanks for sharing Brendan, I'll definitely look into that!
Very interesting and an enjoyable way to travel to work
Even if i only rarely use it to come to work? 😅
Great content. Worth mentioning the Christmas party is £150 per employee and £150 for their partner. So up to £300 per employee in that sense 🤔
Hi Darren, I think you're leaving money on the table by only claiming the statutory flat rate for use of home as office - also don't forget the trivial benefits rule of up to £300 each tax year, but otherwise not bad for someone who is not an accountant. Well done! :-)
Interesting 🤔
WOW Excellent content to say you’re not a specialist you are very knowledgable!
Hi Darren. Excellent content keep up the great work. Another way of reducing taxable profits is charity donations through the limited company. You can’t give gift aid to the charity but can reduce your profits and hence your corporation tax liability. Please correct me if I’m incorrect
Mohammed
Great video, perhaps worth mentioning the £50 trivial benefits that are allowable too (e.g., as a gift voucher) for employees
Hi Darren, having just set up a LTD business in past two months, this is a great series and been really educating..
One video suggestion (if you are open to these) would be the pros and cons of VAT registering... not just because you have to (85k threshold) but say voluntary registration in the first year/ at the very outset (when you know at the end of the year you will exceed the £85k)... from my research, there isn’t much of a financial benefit.. but I’d be interested to hear your thoughts.
Cheers
Dan
Thanks Dan, I'll give it some thought 👍
Great idea!!
Hi Daniel..
there is a big benefit if you SELL non VAT products / sell products with lower VAT vs purchases.
an example here would be something like Mothercare.
Baby clothes are 0 rated VAT. So you don't pay VAT on them but can still claim back the VAT incurred on any allowable expenses. Thus every quarter, HMRC would owe you some VAT money back.
Other than that, it's just better to do when you near the threshold to avoid a hefty fine.
Some suppliers do not like doing business with suppliers who are not VAT registered as they cannot then claim back some of the cost (the VAT paid), however this is made out to be a bigger thing than I believe it actually is.
The videos are informative Darren, really enjoy them! Keep it up! :)
Hi Darren, Nice content. I think a small correct with reference to pre trade expenses. Its 04 yrs for Goods business and 0.6 years for Service business.
Thank you these videos are very helpful please keep them going, I hate jargon and you information is always user friendly and practical.
Get videos. There is one thing I always need clarification about. Considering that company profits are supposed to be used for dividends only at year's end, what should I live on? Is PAYE the only method? Currently, we tend to ignore this and pay ourselves out of PAYE and dividends anyway.
You missed out Directors Trivial Benefits up to £300 a year
Fantastic topic and we'll presented thank you and keep them coming
Great tips, thank you as I've just bought a going concern and setting up as a Ltd.
Yo man loving the videos, could you explain in depth national insurance relating to limited companies and how all of that works? Thanks man
Thanks for sharing, this is great for me as I have a new start up business.
Great, simple video! Subbed!
If you have kids then running your own child care voucher scheme is a great option
Could you elaborate
@@RS_ldn Money paid out through CCVs is tax free to you the employee but is limited to only being used for things like after school clubs, holiday camps and nurseries, etc. For the company it is a tax deductable expense. No need to pay a 3rd party to set up and administer the scheme when you can easily do it yourself. Follow the HMRC rules and limits, keep the right records, design your own voucher, keep a register of what has been issued and the registration details of child care providers you are paying.
Thank you for the clear explanation. Keep up the good work .
Can you produce a video on what is claimable if one has a buy to let property (not via a Ltd)? Thanks
Thanks D P, unfortunately I have very little experience with buy to let 😬
This is awesome! You're a life saver.
Very insightful video thank you.
I’m a non uk resident for the last 13 years. I bought three uk properties through limited companies since 2022.
As a non resident, what would be the CGT for each of these properties if I were to sell them in near future?
Great valuable content!
Hi Darren, thanks for the great content, very educational! Are you able claim the £4 a month home office reduction in corporation tax liability if you want to register the company at your accountants office in order to keep your home address private?
Hi there - great video!!! Just wondered...
You say you can claim taxable expenses for up to 7 years prior to setting up the business - do these have to be in the business' name in order to count? Or by made through a specific business bank account that's assigned to the business? Reason we ask is because we've been incurring a lot of startup costs lately, but they're all in our personal name.
By 'personal name' we mean the person who (once the company is set up) will be the Director. Would we still be able to claim these later down the line?
Hope all of that makes sense!
Yes you would but you have to have a paper trail, proof for HMRC, it’s a good idea to keep receipts bank statements showing the transactions etc.
That’s interesting, I was told that I could only claim up to the previous three years prior to trading, 7 would help a lot as I had some large expenses 5 years ago.
Can you only claim it the first time you claim tax?
7 years, here is the legislation
www.gov.uk/hmrc-internal-manuals/business-income-manual/bim46351
Excellent 👍🏼
Thanks for the video
The pension contribution may be the largest item on the list
I have a question. As a limited company Director, I prefer to pay myself a smaller salary and then take dividends. Using my limited company to boost my pension contributions so that I can take full advantage of the annual pension allowance (up to £40,000).
My question is, assuming £0 pension contributions from my PAYE, in order to take full advantage of the annual pension allowance means the limited company would have to pay the full £40,000 to my pension pot, and not the ‘tax relief amount' of £32,000, since the money is from the pre-tax source. Am I right?
Hi, that’s a great lecture but I’d like to know what statutory provision(s) and the particular section(s) which make the provision that cost incurred are what is “necessary, wholly and exclusively for the business”.
If you buy a car and it’s not just for business but business and home use, then it’s not exclusively for the business and can’t be claimed against tax, if you own a car already in your name for home use but use a separate vehicle for business use then that should be fully deductible against your business for tax purposes. Better still if it has your company details on it such as signage. Weather it’s a sum you pay outright (you will need to show receipts etc to show HMRC) or monthly payments if you are buying via a loan.
Here is the legislation
www.gov.uk/hmrc-internal-manuals/business-income-manual/bim37000
@@kathleenbell1356 very pleased to have your feedback. Thanks 🤝🏾
Please do a tax claimable and allowances and filing and book keeping for ltd companies bro
Great content man! Do you have any plans to make a website? I tried looking online but couldn’t find anything but your UA-cam channel
Really helpful tips 👍🏼. What category do consumables like stationery and packaging for my Etsy shop come under? Thank you.
Thanks!
Nice suggestions. Does pension contribution above national 3% still qualify as being tax deductible? Say employee pays 7% and employer(business) pays 7% match?
Thank you for the insightful video. Do you happen to know if I can claim my passport application as an expense in limited company?
What about Trivial Benefits? Up to £300 pa per employee
Great video, thank you very much.
Ive got question though - can you just pay with your LTD for some of your personal expenses (house rent, private school for kids etc) and claim it as taxable expenses which should be still more efficient at the corporate tax rate (and potentially no vat) than pay yourself with higher rate salary or dividends?
If an expense isn't tax deductible, then what's the benefit? How can the business pay it, from what source?
Hi, thanks for uploading. Still confused about 'paid by the company' for expenses? does that not just mean the director is paying for it if no employees? Like do you get the money back or just comes out your tax owed? ? Any advice be appreciated.
Where's the link to the company car video please?
Thanks for amazing videos which are so helpful. Could i ask that if I pay my secretary to type letters for me on adhoc basis and she sends me invoice accordingly for varying number of hrs she has spent on typing as well as some stationery every month, could i add it as office cost or cost of sales in my accounts? Thanks
Hello enjoyed the video I am thinking with the annual mileage allowance and keeping records of mileage that would be instead of keep all the fuel recipes as you couldn't use both right
Remember that you can claim Input VAT on the fuel element of the mileage allowance using the Advisory Mileage Rates. To make the claim, HMRC will require you to keep the fuel receipts.
How do you pay/allow for the working from home. Is this paid out monthly or is it taken off the profits at the end of the year?
Many thanks for the info :) can you please explain how to pay myself as director of my ltd co.? Which form to fill and can you send links please thank you
Thank you for useful video. What about companies training? For instance for me as a coach who starting up limited company , can I put my courses and education bills as expense? Or if I want to participate in seminars that beneficial for company growth and conference expenses? Looking forward to hear from you.
Kind regards,
Katerina
Good question...i was looking for the same
Broadly speaking, the training course has to be relevant to the work you do in order to generate income for the company before you can claim. Training should enhance or reinforce your existing skill set, increase your competency or proficiency and help you to perform better, all to the advantage of the company.
If the training can be shown to meet most, if not all, of the above criteria then under HMRC rules you can claim tax relief against the cost of the training. You’ll also be able to claim for any associated costs such as travelling expenses and accommodation.
To give an example, if you run an IT company and you go on a course to learn about bitcoin, it is going to be very hard to argue to HMRC that the bitcoin course is relevant to an IT company.
Love watching your videos! . Can you please answer my question
. As a director Can I pay with my personal card and get company invoice and then claim it back? My company card it’s not arrived because of the covid backlog and have to buy few things.
You can buy goods for the company personally, then clain the funds back from the company. This is known as reinbursment. :)
Do the same rules apply if not in a Ltd Co? My wife is not employed but has buy to lets in her own name and I am interested to know what expenses she can claim against. Great videos, thanks!
The following are expenses that you can claim.
Letting agency fees - If you let your property through an agency, you will be able to deduct the fees charged by the letting agency. These are typically a percentage of the rental income.
Advertising costs - You may advertise your property in order to find new tenants. The advertising costs are allowable business expenses and can be deducted.
Accountancy costs - You may use the services of an accountant or bookkeeper. These costs are allowable costs which can be deducted.
Cleaning costs - If you use the services of a cleaner, either for in tenancy cleans or end of tenancy cleans, or to clean your office premises, you can deduct the associated costs when working out your taxable rental profits.
Gardening costs - If your property has a garden and you incur gardening costs, you can deduct these in calculating your taxable profits.
Travel expenses - Any costs that you incur in relation to your property rental business are deductible. This will include costs of visiting the property to check the property, visit the tenants or undertake maintenance, and any other travel costs incurred wholly and exclusively for the purposes of the rental business.
Repairs - You can also deduct the cost of repairs that you need to do to the property or the cost of any fixtures and fittings.
Replacement domestic items - If you let a residential property furnished (other than as a furnished holiday let), you can deduct the cost of replacement domestic items, but not the cost of the original items. The deduction is capped at the cost of a like-for-like replacement.
Utilities and council tax - In a residential let, the tenant will normally meet the cost of the utilities and the council tax. In a holiday let, the utility bills and council tax/business rates (where applicable) are usually met by the landlord. Costs of this nature met by the landlord are allowable business expenses.
Interest and finance costs - Although residential landlords cannot deduct interest and finance costs when calculating their taxable profit, relief is available for 20% of those costs as a tax reduction. Non-residential landlords and those letting furnished holiday lets can deduct interest and finance costs in calculating their taxable profit, as can corporate landlords.
Can hand tools, power tools and consumables all be tax deductible?
Good video. If you use Facebook ads as your marketing way. Can you reclaim it as marketing expense ?
Simple answer, if it relates to the business then yes.
Hi. Let's say you work self employed for a company. Can you still claim 45p a mile for you car if you have already invoiced that company? Cheers
Hi. Great channel. Straightforward advice. Started my Etsy shop 6months ago. Just received a letter from the ICO re DPA fee. Could I double check with you - do I still need to pay if I’m paying Etsy fees? Do all online sellers do this? Thank you.
Thank you. 🙏🏼 Apparently it depends on if you’re the data ‘controller’ or the ‘processed’. It’s a very grey area.
With the flat rate "Home Office" use, how do you run that through your company? Do you submit that as an expense (what is the evidence/receipt) and your company pays you back or is it part of payroll or something else?
In think it's £6 per day
So, if I'm a director (and shareholder) of a company, can I then claim flights (business related) as an expense? if so will it be the whole amount?
Same here. I have huge international travel expenses.
Hey Honest Money, if I run an LTD and I do not have a lot of business expenses but a lot of revenue and profit in general is this perfectly fine?
That is the thing you most want to avoid 🗿
I don't understand how an expense can be non-tax deductable. If I class something as an expense in my accounts, would my accounting software not automatically minus the expenses from the profits in order to provide me with a figure to calculate the amount of corporation tax I owe?
I always took it as, things like my suit is non tax deductible even though I class it as an expense. So I might take it from my profits on accounting software but my accountant will correct it
What about time spent on researching all this and more... that's a huge expense
I got mixed up at this bit ' up to 7 years of pre-trading expenese can be claimed.
does that mean If I start a company today and convert it to a ltd in say 4 years I can claim back anything from now?
It means if you bought something which ends up being used in the business before you started the business, you have 7 years to claim for it
Thank you.
Gift Vouchers £300 per year per director
Hi Darren can I claim back my travel money and food expenses if I'm being paid as PAYE? Also will any company accept Ltd company to work for thier any position?
With the milage log, does that count for airline miles?
Be nice claiming 45p per mile on a flight. But no, unless you're a pilot then it's just the cost of a ticket is the expense you are claiming (plus airport parking, meals during the travel etc)
like like
Home office can be claimed as a NONE Flat rate if you work out how much of the house you use for business. This is worth way more than the shitty flat rate. You can claim this as PAYE also as well as self employed or LTD Director. The flat rate sucks.