Legitimate Expense

godtabh

I am starting a new job shortly. It will be on a contractor basis initially as a trial period.

As it is a trial period and because I am a contractor the company will not be supplying me with the traditional "office space".

What this basically means is as follows. I will have to supply all my own computer equipment, mobile phone, internet (I will be expected to work from home/their office from time to time), etc.

The will supply me with relevant software and will allow me to connect to their network, subject to having the minimum spec PC, via a VPN.

I will then bill them on a monthly basis for my services.

What can I claim then as a legimate expense for tax purposes?

• Computer
• Computer equpment (printer, back up drive, screen, etc)
• Mobile phone bill
• internet bill (home based but used for work)
• Car costs (currently dont have one so would the purchase cost be included?)
• Travel expenes
• Training expenses
• Work related meals/Subsidence
• Car related mainteance
• anything else?

I obviously want to minimize my tax bill but only legally while ensuring I can do the job and still earn a living

srsly78

The first thing you need is an accountant. They will sort all this stuff out for you.

godtabh

Why?

This should be a relatively straight forward process. I don't need an over priced accountant to make simple tax returns.

I do need to inform myself as to what is legitimate or not. I have Revenue's Starting in Business Guide and KSi's Tax booklet 2012. These have given me an understanding but I want a better understanding.

srsly78

Because running a business comes with loads of regulatory requirements and is more complicated than you think. Once you have an accountant you can ask them questions any time you like.

Sure don't get an overpriced accountant, get a decently priced one. You will need help with your personal tax affairs as well - being self employed complicates this too. You don't need the accountant for "simple tax returns" - you need them for complicated annual returns - and for general advice.

Get one now, otherwise a year down the road you will suddenly be panicking about your return and end up paying a fortune.

godtabh

Thank you for your input.

I'd like to go back to the original topic please

srsly78

The answer is yes to your bullet points. Some points are complicated however by the definition of your main place of work, vs your clients. Some items may classify as a partial benefit in kind. Needs specialist advice.

I am a contractor that mostly works from home, if I could give you a definitive answer I would - but it really is complicated.

One thing you have missed is home office rental. If you use 1 room in a 4 bed rental as an office, then you can have company pay 1/4 of rent. If you own the house then this is more complicated...

godtabh

The majority of the time it will be in my clients offices

srsly78

Depends how long the contract is. If the clients office is your "main place of work" then some expenses may be disallowed. Just like how normal paye workers can't claim expenses for travelling to their normal workplace.

godtabh

6 month initial contract.

I will be literally given a desk and a chair and allowed to use their network/printer. They will provide software.

I will be expected to travel to a considerable amount of meetings as well.

MikeOsullivan

It's a very tricky area to deal with as the penalties can be fairly serious (usually seen as tax evasion).
Get an accountant!

mkdon05

For this 'simple tax return' I hope you can distinguish the listed items between capital and revenue expenses and the treatment of capital allowances for tax purposes!

RUDOLF289

godtabh wrote: »

I am starting a new job shortly. It will be on a contractor basis initially as a trial period.

As it is a trial period and because I am a contractor the company will not be supplying me with the traditional "office space".

What this basically means is as follows. I will have to supply all my own computer equipment, mobile phone, internet (I will be expected to work from home/their office from time to time), etc.

The will supply me with relevant software and will allow me to connect to their network, subject to having the minimum spec PC, via a VPN.

I will then bill them on a monthly basis for my services.

What can I claim then as a legimate expense for tax purposes?

• Computer
• Computer equpment (printer, back up drive, screen, etc)
• Mobile phone bill
• internet bill (home based but used for work)
• Car costs (currently dont have one so would the purchase cost be included?)
• Travel expenes
• Training expenses
• Work related meals/Subsidence
• Car related mainteance
• anything else?

I obviously want to minimize my tax bill but only legally while ensuring I can do the job and still earn a living

The general tenure of the advise as given by the other posters is get an accountant.

Appreciate that will incur an expense (although certainly the first consultation will be free), but it makes sure that you keep your books in order and avail of the maximum allowable deductions / expenses.

My advice is ; get an accountant (but you have heard that one before ....)

Cheers,
Rudolf289

Mr. Incognito

You poor devil..

In general it is expenses incurred exclusively for business purposes and not for private use,

Private use must be apportioned and discounted

mathepac

RUDOLF289 wrote: »

... Appreciate that will incur an expense (although certainly the first consultation will be free), but it makes sure that you keep your books in order and avail of the maximum allowable deductions / expenses. ...

and your accountant's fees can be offset against tax.

J.Ryan

I would recommend getting an accountant also, but one question I would ask is, are you going to be a sole trader or a director/employee of your own limited company.

Most of the items in your list would be allowed, some won't and some depend on the circumstances.

19driver83

godtabh wrote: »

I am starting a new job shortly. It will be on a contractor basis initially as a trial period.

As it is a trial period and because I am a contractor the company will not be supplying me with the traditional "office space".

What this basically means is as follows. I will have to supply all my own computer equipment, mobile phone, internet (I will be expected to work from home/their office from time to time), etc.

The will supply me with relevant software and will allow me to connect to their network, subject to having the minimum spec PC, via a VPN.

I will then bill them on a monthly basis for my services.

What can I claim then as a legimate expense for tax purposes?

• Computer
• Computer equpment (printer, back up drive, screen, etc)
• Mobile phone bill
• internet bill (home based but used for work)
• Car costs (currently dont have one so would the purchase cost be included?)
• Travel expenes
• Training expenses
• Work related meals/Subsidence
• Car related mainteance
• anything else?

I obviously want to minimize my tax bill but only legally while ensuring I can do the job and still earn a living

I recently did very similar to yourself, setting up a ltd company.
Take some advice and get an accountant. I paid;
€700 incl. vat for start-up.
€1200 incl. vat for any advice and years accounts.

What you really need is advice. Your accounts should be fairly straightforward.

Shane732

godtabh wrote: »

Why?

This should be a relatively straight forward process. I don't need an over priced accountant to make simple tax returns.

I do need to inform myself as to what is legitimate or not. I have Revenue's Starting in Business Guide and KSi's Tax booklet 2012. These have given me an understanding but I want a better understanding.

Seriously?

Section 81 TCA 1997 will be your starting point so.

The likelihood is that KSI (whoever they are) didn't prepare that tax booklet and didn't even read through it. I wouldn't place much credence on any tax booklet.

If you want to minimize your tax liability I suggest you get yourself a tax adviser. If you pay peanuts you get monkeys.

I'd urge caution when you decide to belittle an entire profession in future.

Grolschevik

godtabh wrote: »

• Computer
• Computer equpment (printer, back up drive, screen, etc)
• Mobile phone bill
• internet bill (home based but used for work)
• Car costs (currently dont have one so would the purchase cost be included?)
• Travel expenes
• Training expenses
• Work related meals/Subsidence
• Car related mainteance
• anything else?

From my experience as a taxpayer rather than a professional:

• Computer -- maybe depreciation over time.
• Computer equpment (printer, back up drive, screen, etc) -- think so.
• Mobile phone bill -- depends.
• internet bill (home based but used for work) -- possibly.
• Car costs (currently dont have one so would the purchase cost be included?) -- No and no.
• Travel expenes -- No.
• Training expenses -- Dunno.
• Work related meals/Subsidence -- No.
• Car related mainteance -- No.
• anything else? Only expenses that are incurred in direct connection to doing the job. Travel, food, subsistence don't count.

Mr. Incognito

Grolschevik wrote: »

From my experience as a taxpayer rather than a professional:

• Computer -- maybe depreciation over time.
• Computer equpment (printer, back up drive, screen, etc) -- think so.
• Mobile phone bill -- depends.
• internet bill (home based but used for work) -- possibly.
• Car costs (currently dont have one so would the purchase cost be included?) -- No and no.
• Travel expenes -- No.
• Training expenses -- Dunno.
• Work related meals/Subsidence -- No.
• Car related mainteance -- No.
• anything else? Only expenses that are incurred in direct connection to doing the job. Travel, food, subsistence don't count.

.

The above is why I ban specific advice.

People "having" a shot at it. Other people relying on it.

Tax Penalties from revenue, PLUS interest and some eijit comes back here saying BUT YOU TOLD ME.

Practically every single one of the above are wrong. I count 1 correct.

Hire a professional. Thread closed