This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

LTD works done

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am
LTD works done

Postby ltd101 » Mon Jul 29, 2013 9:12 pm

Property LTD set up.

If I need to do some basic decorative work and am being charged a per day fee (I have to buy all the materials). How does this work?

I am responsible for paying his tax?

Am i better off making him an employ of the firm?

Or do I just pay him cash out of the companies acct?

I presume this is defined as capital investment?

tks

King_Maker
Posts:6538
Joined:Wed Aug 06, 2008 3:22 pm

Re: LTD works done

Postby King_Maker » Tue Jul 30, 2013 11:52 am

Is he genuinely self-employed - i.e. with other clients?

Or does he just work for you?

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am

Re: LTD works done

Postby ltd101 » Wed Jul 31, 2013 8:48 pm

He has another job but would be just doing an odd jobs/ decorating for me

King_Maker
Posts:6538
Joined:Wed Aug 06, 2008 3:22 pm

Re: LTD works done

Postby King_Maker » Thu Aug 01, 2013 8:35 am

It would be cheaper to pay him as self-employed, as you would avoid Employer's NI, insurance etc.

However, the onus is on you to determine if he is an employee or truly self-employed. If HMRC correctly consider him to be your employee, then PAYE & NI should have been operated. Interest and penalties may be payable as well.

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am

Re: LTD works done

Postby ltd101 » Sun Aug 04, 2013 9:06 pm

tks vm kingpin

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am

Re: LTD works done

Postby ltd101 » Fri Oct 18, 2013 8:02 pm

I have just bought a new property in my LTD (which i own 50/50 with my wife). The property was let out to other tenants who did not look after the property. I have incurred the below costs so far

£1500 decorator
£300 materials
£300 new kitchen work tops
£120 Gardener
£150 roof repairs

I am very new to the company game and keen to make sure that I have the correct books & records from the outset. I have tried to pay as many of the workers via bank transfer as possible (note they are self-employed, they do not work for my company) but should I also get them to invoice me/ sign receipts? Also The gardener is insisting I pay in cash. Will it suffice for me to withdraw the cash from the company acct and just get a reciept from him for cash received?

Finally, I think all of above costs incurred are expenses (which can be deducted against future rental revenues) rather than capital costs? Is that fair? thoughts appreciated

King_Maker
Posts:6538
Joined:Wed Aug 06, 2008 3:22 pm

Re: LTD works done

Postby King_Maker » Sat Oct 19, 2013 9:42 am

Those items seem to be revenue expenditure, and therefore deductible from the rent.

Yes, I would obtain a receipt from the gardener for the cash payments.

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am

Re: LTD works done

Postby ltd101 » Sun Oct 20, 2013 12:27 pm

tks vm (again) really appreciated


Return to “Property Taxation”