how to deal with business expenses

tommo200

hi , i am a one man recently set up private limited company - IT consultancy , i.e. a contract developer.
Goin ot alone , using ROS , very handy it is.
Just a question or two someone may be able to answer :
For my out of pocket expenses like travel to and from different client sites , a meal or two with potential clients :
firstly are these tax deductable ?
secondy how do i 'deduct' them - do i pay myself my salary with these expenses deducted form the gross or does it all go 'through the company' - they werent bought on company credit card but out of my pocket as it were ?
ta for any answers.

Baby4

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jnh

Charging expenses to your company up to the tax free limits is a tax efficient method of extracting money from your company as you receive the expenses tax free and the company gets a corporation tax decuction for them.

The most common expenses you will come across are motoring expenses ( if you drive your own car as opposed to a company car) and subsistence expenses ( if you are out of the office for a specified period of time).

Entertaining expenses are not tax deductible.

To charge the company for your expenses simply keep a log of them and write yourself a cheque for the amounts owed to you as and when you see fit.

They will only be taxable if you charge over and above the tax free thresholds - which you probably shouldnt do.

The revenue link above is quite useful.

If your stuck PM me id be happy to help

tommo200

thanks for answers folks , sound

tommo200

actually another question if i can :
is it worthwhile the company buying me a yearly travel pass?
i know the banks and civil service do this for their employees .

jnh

If your company pays for your travel to and from your normal place of work it is treated as a benefit in kind and taxed under the PAYE system ie.travel pass. Your company can however reimburse you tax free for travel expenses which are "one off" ie. not your daily commute. What is your background ie. have you a fixed place of work/office? do you have a car? How do you normally travel to work? etc. If this is known it should be easier to advise you.

tommo200

hi , I refer to http://www.taxsaver.ie
I work in a fixed location in town and travel by dart daily to same location.
thanks.

jnh

the rail tickets are not subject to tax or prsi. you can still get reimbursed for other business travel by either charging up to the tax free thresholds for mileage allowance or claiming back the actual expenses. make sure to charge subsistence expenses also if you out of the office.