HMRC’s approach to how Limited Company expenses are claimed by contractors is changing. From April 2016 new methods will come into play that will see HMRC clamping down on anyone who does not comply, or actively ignores these changes.
- Goodbye dispensations – all existing dispensation arrangements that allow expenses to be paid and not reported will come to an end
- Benchmark Scale Rates (BSR) – Any existing agreement to use BSR must now be confirmed with HMRC
- A new expenses regime – appropriate expenses system must be in place for all employees of Limited Companies that claim expenses
- Travel and subsistence – further restrictions and a possible outright ban on all travel and subsistence expenses is expected
Make sure that as a director of your Limited Company you meet all of your legal obligations and remain compliant when claiming expenses. Be prepared for changes in the way you can claim travel expenses, as this may affect which contracts you accept.
Download our full guide Claiming Expenses: Preparing for the future to ensure you are prepared for these changes and can gain the maximum tax relief from your company’s expenses in the correct compliant manner.