Mixed Bag of taxation questions

[shouldknow]

Hi,

I’m currently a sole trader working from home in the family home. I’m moving to establish my limited company this year and, later in the year, will be moving out, working from my rented accommodation. I have a few ‘grey area’ questions, particularly related to expenses and taxation of same, and would welcome a bit of advice.

First of all, is it reasonable while I’m a sole trader to list the following as business expenses and deduct them from my profits?
- Transport via Dublin Bus (c. €20 for every week of on-site work with clients)
- Transport via taxi for on-site work with clients
- Parking of a private car during on-site work with clients
- Phonecalls related to the business
- The home broadband (this is currently billed to another person living in the home)
- Private car insurance
- The legal and registration costs of incorporation

Secondly, once my limited company is set up, is there any particular reason why I and the company’s other director should be listed as PAYE employees? A person working in the same industry – with a similar set-up to my own – simply adopts the practice of working out how much he needs to live on that month, and then pays himself that amount. If there’s no compelling reason for not doing so, I’d probably be keen to adopt this tack.

Finally, when the limited company is set up, there are a few tax questions too:
- Can all or part of the cost of renting my accommodation/office be listed as a business expense? If so, does the lease need to be taken out in the company’s name?
- I’m assuming the cost of the broadband can be listed as an expense, but does this also need to be in the company’s name?

 

[Nige]

- Transport via Dublin Bus (c. €20 for every week of on-site work with clients) - YES
- Transport via taxi for on-site work with clients - YES
- Parking of a private car during on-site work with clients - YES
- Phonecalls related to the business - YES
- The home broadband (this is currently billed to another person living in the home) - hmm, would be better if it was in your name but if you are paying the other person, then I would take it as a deduction on the % to which is it used for business purposes (get the billed person to sign receipts for you).
- Private car insurance - NO
- The legal and registration costs of incorporation - NO

Once you are the director of the new company, any directors fees/salary made to you MUST be subject to PAYE. However, you are not obliged to pay yourself a set amount monthly.

Business costs (eg rent and broadband) can be deducted in full but should be in the company name.

 

[mik_da_man]

The legal and registration costs of incorporation...

I thought this would be an allowable expense??