Just formed new limited company

handyman

Hi,
We've just formed a limited company. We are two directors and have two other employees working for us. We're in road maintenance, have three trucks, need to stay away a few times a month if work is far away. What can we claim for. We keep all diesel receipts, and this amounts to quite a lot but we also claim mileage for going to meet with clients, view work to be done, return again to have work signed off. I think we can claim €15 each as directors for meal allowance without showing receipts. We also take cliens out for dinner from time to time and will have to look after them at Christmas with bottles of plonk (can we claim this)? Any help would be appreciated.

kluivert

This is a quite common question with people who set up their own business. The answer is quite straight forward.

While the company can pay for dinners etc the revenue will not allow it as a trading expenses and will have to be added back in arriving at your tax adjusted profit.

A company is, in general, entitled to deductions in respect of revenue expenditure - wholly and exclusively incurred for the purposes of its trade - against its profits.
It is not, however, entitled to claim a deduction in respect of business entertainment expenses nor is it entitled to claim a deduction in respect of capital expenditure.
It may, however, be entitled to capital allowances in respect of certain capital expenditure e.g. plant, machinery, industrial buildings.
It should be noted that depreciation of capital assets as computed for audited accounts purposes is not an allowable expense against the company's income for the purposes of Corporation Tax.

www.revenue.ie

ircoha

handyman wrote:

Hi,
We've just formed a limited company. We are two directors and have two other employees working for us. We're in road maintenance, have three trucks, need to stay away a few times a month if work is far away. What can we claim for. We keep all diesel receipts, and this amounts to quite a lot but we also claim mileage for going to meet with clients, view work to be done, return again to have work signed off. I think we can claim €15 each as directors for meal allowance without showing receipts. We also take cliens out for dinner from time to time and will have to look after them at Christmas with bottles of plonk (can we claim this)? Any help would be appreciated.

Just to be clear, while I assume there is no overlap here, but u cant charge mileage AND fuel costs in respect of the same journey.
I assume the trucks consume the diesel and the mileage is for the cars.

To elaborate a little on what kluivert wrote:
depreciation in ur financial accounts is added back in your tax cals and 'substituted' with a calc for capital allowances.

Both are calculated differently

Snowdrop

I've just started a payroll bureau service for small companies. Just wondering if you use or are interested in using such a service:)