One of the main financial benefits of working through your own Company as a Contractor is that you may be able to claim expenses. In theory the higher your expenses the lower your tax bill as you only pay tax on the profits of the company.
However, there are a few pitfalls to be aware of. The expense MUST be a cost that is wholly and exclusively a ‘business expense’ and receipts should ideally be in the name of the Company not an individual.
It is also vitally important that you keep your records up to date by retaining receipts and being able to prove the business expense.
Read our Expenses Guide for a full explanation of expenses and the guidelines for making a claim and keeping your records up to date.
If you have any questions or queries please contact us on 0121 778 6278