It’s certainly well known (we may have even said it a few times ourselves) that limited company contractors can enjoy a wide variety of perks. Not only do they have a better work/life balance, but they can also earn more than permanent employees. Sounds great, right?
Another benefit is the ability to claim legitimate business expenses. While you might be aware of the more obvious ones such as travel and accommodation, but did you know there are other costs you can claim back too? Intrigued? Read on to find out more.
Can I claim medical expenses?
We have to admit, this is a bit of a grey area. Under normal circumstances, you’d need to class medical treatment or insurance costs as earnings so they’d be subject to Income Tax and Class 1 National Insurance Contributions (NIC).
However, there are some costs that are exempt from this rule. If you decide to cover them via your company, you won’t have to pay additional tax to HMRC.
Here’s a list of what you can claim for:
- Medical checks and health screenings – as long as they take place once a year
- Eye tests
- Glasses – as long as it’s visual display unit (VDU) prescription only if you use a computer for the vast majority of your work
- Medical expenses when working abroad – if you’re injured while working abroad, you’ll be exempt from NIC
- Medical treatment or insurance related to operational risk injuries and occupational diseases
Are there any other expenses I can claim for?
Yes, lots! As a limited company contractor, you can claim for more expenses than your umbrella counterparts. For a full list, please see our guide.
How can ClearSky Contractor Accounting help?
We understand that you may not have the time in your busy WorkStyle to clue yourself up about the different types of expenses you can claim for. That’s why our dedicated team of experts is on hand to offer advice whenever you need it.
We’ll be with you all the way through your contracting career, from the incorporation phase and beyond.