Invoicing
In order to receive payment for services, you need to issue an invoice to the client r agency.
An invoice should contain the following Companyname, address, and registration number.
- Date
- Client full name and address
- Brief description of served rendered.
Expenses
If you incur expenses while generating business income these can be claim from the company, and they have to pass the wholly and exclusive test.
Here are some examples of operating expenses.
Business Travel:
If you incur expenses traveling to a client’ site in order to complete a contractual obligation, then these costs can be claimed form the company. These can only be claimed on condition the site traveled to is temporary, i.e. you will be traveled or working from there for a period of less than 24 months.
If a worker uses their own car for travel, then mileage allowance can be claimed.
According to the current HMRC rates, you can claim 45p per mile on the first 10,000 business miles and 25p per mile on anything over this limit.
So, to calculate your mileage deduction, you’d multiply your mileage as follows:
(10,000 x 45) + (5,000 x 25)
This means your total mileage deduction for 2017 / 18 would be £5,750
Accommodation:
If it is necessary to stay away from home while fulfilling your contractual obligation the costs can be claimed against the company, the costs have to be reasonable.
Use of home as an Office:
If you work from home, you can claim a prorated amount based on the space in your home allocated specifically to homeworking, else the simplest way is to claim the fliterate allowance of £28 per month of which no receipt isrequired.
Accountancy fees
Fully tax deductible.
Mobile phones:
Provision of mobile phones is not a taxable benefit, and the payments of the mobile phones bills must be made from the company business account.
Internet connection:
It’s possible to claim for the costs associated with the internet, the contract must be between provider and company, and private use must be insignificant.
Training costs:
Costs associated with updating or enhancing an existing skill can usually be treated as company expense. They are fully tax deductible and do lead to a taxable benefit.
Business entertaining:
While expenses incurred while entertaining clients can be put through the company books, they are not tax datable. Even tough entertainment costs are not deductible for corporatetax, it is still worth claiming the cost from the company.