Articles tagged with: expense
getting things done, routine »
It’s long been a policy of ours that all employee expense claims (and directors’ expense claims) should be supported by receipts, proving that the relevant expenditure has taken place, and that the employee’s claim is for a legitimate business expense. That’s set out in our guide:
Claiming back expenses from your own Limited Company
We don’t need to see every receipt from Pret a Manger for £2.99 sandwiches, but we want the reassurance that you the client make a point of keeping your staff (and yourself) within the rules.
So, here is something …
one offs »
I’ve only just registered my business, can I claim pre trade expenses which I paid personally?
The basic principal is that “if you paid for something in the knowledge that you were starting a business, and the prime motive for buying this something was to enhance that business, then it is a business expense” and (subject to a three year time limit) you can claim for it. That applies to both goods and services, and in order to claim the full cost you must satisfy both parts of this test, that …
one offs »
I’ve only just registered for VAT, can I claim back old VAT?
The short answer is “it depends”.
Have you read the general rules in the pre trade expenses article already? Do that first, then continue with this article.
Yes, you can claim for the VAT on goods (and in limited circumstances on services too) provided they:
were purchased within the three years preceding the date of your VAT registration
are still in the possession of the business on the date of your VAT registration
are actually used in the course of the business; and
satisfy the …
In order to establish what is a business expense, first we need to know “what is a business”?
A business is “an activity which is earnestly pursued with the objective of making a profit” as set out in the case of Customs and Excise Commissioners v Lord Fisher 1981.
And so it follows that a business expense is a cost which is incurred in order to increase the chances of that activity making that desired profit. If the primary purpose of incurring an expense is not to help the business to make …
You can link directly to this article using the short URL http://bit.ly/27bvg8
Pretending you’re an employee again!
If you have ever been employed and had to submit expense claims, you will be familiar with this process. Now that you’re a director of your own limited company, you need to follow the same sort of process that regular employees have to follow. It’s done this way, because you are trying to keep corporate matters corporate and private matters private!
The best thing would be to get all your suppliers to bill the company directly, …