Expenses for contacting

Looking for advice 2013

Starting a new contracting role soon. This type of employment is new to me and was wondering if anyone could share any insights into the type of expenses I could claim legitimately

I know the usual ones like mobile phone Internet and more recently home electricity and heating for are there any other ones that I may not be thinking of that will be worth exploring

What accounting companies would people recommend who can handle the wages and handling income tax returns and how much do they cost

The Mighty Quinn

Interested in this too. Possibly taking on a contracting role soon.

Unsure whether to go as PAYE Umbrella Company, Director Umbrella Company or Personal Limited Company. What are you doing and why?

CPTM

I went with private ltd company in the end because I found it easier to claim expenses. But I was under an umbrella company for a while at the beginning and enjoyed its simplicity. Icon accounting were great from beginning to end for me but I went with a private accountant after about a year when I started a ltd company because he was recommended and I wanted a more personal relationship with someone who knew my setup. I've been with him for 5 years now.

With the Ltd company I have a business bank account with a debit card. So whenever I go to buy something for the company, like my health insurance, pension payments, or laptops or phones, printers etc I can just use the card and send off the receipt to the accountant.

Whereas with the umbrella company you pay from your current account and the tax is written off afterwards.

I just found with smaller ticket items, like pens, pads, printer ink etc I didn't bother claiming back the tax with the umbrella system but with the ltd company I did because I had the card. Same with online courses or trainings.

You can also buy a one for all voucher (or any voucher I think) for yourself once a year tax free. I think up to 500 euro.

You might not be in the market for an electric car but I believe you can buy a brand new one tax free on the company account. That's a mega deal for anyone looking to buy an electric car and I think it'll be phased out after this year.

I always advise people to go umbrella to begin with to see if the contracting life is for them. It's so much easier and cheaper to get setup with the likes of Icon. If you see the contracts starting to roll and you like it then maybe consider an LTD company. That being said I have a few contractors around me who have stuck with the umbrella company for years and years, nothing wrong with it.

The Mighty Quinn

A lot of info there, thank you for the post.