Expenses
Can I claim for working from home?
Sole traders can use a flat rate of £10 to £26 a month, depending on hours worked at home, or claim a fair share of actual bills. Limited company directors: your company can pay you £6 a week tax-free.
Expenses
How much can I claim for business mileage?
45p a mile for the first 10,000 business miles in the tax year, then 25p. Your regular commute to a permanent workplace doesn't count.
Paying yourself
Can my company give me a gift tax-free?
Yes, as a trivial benefit: up to £50 per gift, not cash or a voucher that converts to cash, and not a reward for work. Directors of small companies are capped at £300 a year.
Expenses
Is the Christmas party tax-deductible?
Yes, up to £150 a head per year for an annual event open to all staff. Go even £1 over and the whole amount becomes a taxable benefit.
Expenses
Can I claim for clothes?
Only uniforms, protective wear or costumes. A suit you could wear anywhere else doesn't count, even if you only wear it for client meetings.
Expenses
Can I put my phone through the business?
A mobile phone contract in the company's name is a tax-free benefit (one per employee). Sole traders can claim the business-use share of their bill.
VAT
When do I have to register for VAT?
When your taxable turnover goes over £90,000 in any rolling 12 months, or you expect to pass it in the next 30 days alone. Registering voluntarily can make sense too.
Paying yourself
What if I borrow money from my company?
That's a director's loan. If it isn't repaid within 9 months of the year end, the company pays a temporary 33.75% tax charge on it. Loans over £10,000 can also be a taxable benefit.
Paying yourself
Can I pay my partner through the business?
Yes, if they genuinely do work for the business and the pay is reasonable for that work. HMRC can challenge salaries that look like income splitting.
Deadlines
When is Corporation Tax due?
Payment is due 9 months and 1 day after your company's year end. The CT600 return itself is due 12 months after the year end.
Deadlines
What are payments on account?
If your Self Assessment bill is over £1,000, HMRC usually asks for two advance payments towards next year's bill: on 31 January and 31 July.
Getting started
Do I need a separate business bank account?
Limited companies: yes in practice. The company's money isn't yours. Sole traders: not legally required, but it makes your records and Making Tax Digital far easier.
