What expenses can I claim

cubix

I am a sole trader doing various forms of construction work. Is there a website that will tell you what you are eligible for. Any pointers on what to add or delete from the list.
Would appreciate if anyone had any answers to the other questions I have

1)
Don't work from home so not looking to get any costs back for gas/elec etc.

Tools
Van/purchase/repair/up keep
Work wear
bank charges
advertising/print/web/signage for vehicles
Mobile phone bills
fuel/diesel/petrol
medical expenses
Storage for stock in a container in a yard

2)
I am not C2 registered and get lads to give me a dig out when and where I need them. I pay them cash/cheque and get them to give me a receipt for payment. On this basis I presume they are classed as contractors and its there obligation to look after there own tax etc, correct?. The other query is the fact that I am not C2 registered nor are they there is no obligation for me to hold back 35%, is there ?

3)Thinking of going into business with a mate next year in similar work and setting up a limited liability company. He wont have a tax clearance cert as he owes the revenue. We were thinking of looking for C2 clearance so as to increase our chances of work. He was saying this is possible if no one director has no more than 49% holding regardless of their tax status.

4)Subsistence, anyone know is this payable to directors or just employees. The reason I ask is I would be considered as a director next year but will still be working on the road. Also would anyone have an idea of what the daily rate would be.

Thanks

mickbyrne

cubix wrote: »

Any pointers on what to add or delete from the list.
Would appreciate if anyone had any answers to the other questions I have:
1)
Don't work from home so not looking to get any costs back for gas/elec etc.
• Tools
• Van/purchase/repair/up keep
• Work wear
• bank charges
• advertising/print/web/signage for vehicles
• Mobile phone bills
• fuel/diesel/petrol
• medical expenses
• Storage for stock in a container in a yard

In the revenues terms “any expenses incurred wholly or exclusively” to carry out the trade are allowable. Basically every time you make a payment for any expense at all, ask yourself: Did I spend this to help me carry out my business, If the answer is yes, then more than likely it is allowable. Include the receipt with your other receipts and your accountant will advise. It’s better to have you accountant pulling receipts out rather than looking for receipts.

cubix wrote: »

2)
I am not C2 registered and get lads to give me a dig out when and where I need them. I pay them cash/cheque and get them to give me a receipt for payment. On this basis I presume they are classed as contractors and its there obligation to look after there own tax etc, correct?

YES AND NO – SEE BELOW

cubix wrote: »

The other query is the fact that I am not C2 registered nor are they there is no obligation for me to hold back 35%, is there ?

NO,NO,NO,!!!!!!! – AND THE REVENUE ARE NOT FORGIVING IN THIS AREA.
When making payments to subcontractors you must either –
• have a relevant payments card (RCT47) which has been issued by the tax office for the subcontractor, or
• stop 35% from the payments, issue the subcontractor with a RCTDC and file monthly and annual RCT returns
If you have made €5,000 of payments to subcontractors without correctly operating RCT you are potentially standing on a liability to the revenue of over €3,500. (5000x35% + interest + penalty of up to 100%) The onus is on you to operate RCT correctly, the revenue will not listen to any pleads of ignorance in this area

cubix wrote: »

3)Thinking of going into business with a mate next year in similar work and setting up a limited liability company. He wont have a tax clearance cert as he owes the revenue. We were thinking of looking for C2 clearance so as to increase our chances of work. He was saying this is possible if no one director has no more than 49% holding regardless of their tax status.

The first thing both of you need to do is to draft a partnership / shareholders agreement with the aid of a solicitor. If neither of you want to do this, then I would not recommend partnership / ltd co. As your mates tax affairs are not up to date, and you do not know how to correctly account for RCT and hence have a potential personal liability yourself, you both may just be digging a bigger hole for yourselves into the future.

I’ve had a client in the past who have done what you are proposing, my client, records up to date etc went into partnership with his friend, records not up to date, everything went fine for 6 months but after this his friend fell back to his old habits and things went down-hill. There was no partnership/shareholders agreement in place to resolve the issues and the two have now fallen out and gone their separate ways with significant liabilities to boot.

cubix wrote: »

4)Subsistence, anyone know is this payable to directors or just employees. The reason I ask is I would be considered as a director next year but will still be working on the road. Also would anyone have an idea of what the daily rate would be.

Subsistence is payable to directors as directors are employees of a company also.

cubix

Cheers Mick for that in depth reply, have got an account on board now so should iron out some of the queries/problems we may have.

mrsdaisymay09

Hi Mick

Just a quick question on subsistence expenses. I am currently been told that I'm getting a 10% paycut or have the choice of receiving lower salary and the balance will be made up of subsistence expenses to match my net wage per week. I'm not sure what to do or how it will effect me financially....maybe the lower salary & subsistence expense will benefit me as I will be paying lower tax??? Can you please advise me....i dont understand the subsistence expenses...am i entitled to it as I'm not based in the office most days and have to travel to different sites for jobs.
Thanks in advance!