If employed you can claim civil service mileage rates - you can't as self employed. If s/e you claim the actual proportion of expenses incurred. So if you do 2,000 business miles out of a total of 20,000 then you claim 10% of everything. Depreciation depends on type of car. - the greener the greater.
I'd have serious reservations about all of this, except the first sentence.You can deduct any expenses incurred which are bona fide expense for the business. This would include a fair apportionment of heat, light etc for home office. Technically you could claim a proportion of your mortgage, but be very careful here. If you claim any of the mortgage then the house is partly a business premises, and when you come to sell you cannot describe it all as your residence, thus leaving yourself open to CGT on the sale of the house. If your renting however you could claim a portion of the rent.
I read the OP as being a question between being an employee of the UK company or contractor via their own Ltd company.
Yes, it's possible to contract as a sole trader, which you appear to have picked up, but it's unusual, especially where you only have 1 client, and I'd question why anyone would choose that route.
Having a Ltd company opens up additional pension opportunities.
I'd have serious reservations about the piece I quoted, in part as it's potentially misleading and in further part as it's factually wrong.The poster asked about employee vs self-employed for a contract. The issue of being a director is outside the scope of the question.
As for your comments about having serious reservations, could you elaborate? Are you suggesting that one can't expense a reasonable proportion of light and heat etc for home working?
I'd have serious reservations about the piece I quoted, in part as it's potentially misleading and in further part as it's factually wrong.
Where would one start? Suffice to say the point about claiming mortgage payments as a deduction against income tax is so far off the scale to beggar belief.Could you be specific about how it is factually incorrect?
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