Share this content

Limited and paye

Can I open a limited company and pay my paye through the limited company

Didn't find your answer?

I live in Scotland and work in rocester for a British blue-chip company as P.A.Y.E basis can I open a limited company pay my paye earnings into it to claim my expenses, like fuel average 1100mile a trip,and digs

Replies (14)

Please login or register to join the discussion.

avatar
By David Ex
29th Sep 2021 18:47

You can if you want but can’t see the point.

Thanks (0)
Replying to David Ex:
avatar
By Welder12
29th Sep 2021 19:01

Am paying alot of cash out in expenses am I able to claim fuel costs and digs via self assessment

Thanks (0)
Replying to Welder12:
avatar
By Leywood
29th Sep 2021 19:14

You think you can, could be wrong. Not enough to go on.

Have you asked an Accountant?

Thanks (0)
Replying to Welder12:
avatar
By David Ex
29th Sep 2021 19:20

Welder12 wrote:

Am paying alot of cash out in expenses am I able to claim fuel costs and digs via self assessment

Oh, I see, it was a tax question.

It's highly unlikely based on the limited information provided.

Have a read of this and see if it’s applicable:

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32080

Thanks (0)
avatar
By Paul Crowley
29th Sep 2021 20:14

Chat with your local accountant
First meeting free

Question as posed makes no sense
An employee is an employee
Are you suggesting that you want not to be an employee but a subcontractor
If so ask your employer

Thanks (2)
Replying to Paul Crowley:
avatar
By Hugo Fair
29th Sep 2021 22:10

Exactly.
If you are an employee, then that will determine what you can claim (via SA) as allowable expenses.
Wholly different rules apply if you were a subcontractor or even self-employed - although those don't sound like options for OP (based on limited info).
But employees can't generally claim regular accommodation/travel costs which are not wholly, exclusively and necessarily incurred in order to perform the work.

Thanks (2)
avatar
By SXGuy
30th Sep 2021 07:40

Never heard of digs being tax deductable sorry.

Thanks (0)
Replying to SXGuy:
ALISK
By atleastisoundknowledgable...
30th Sep 2021 09:09

The spade might be though, depends on the trade.

Thanks (1)
By Duggimon
30th Sep 2021 09:44

You pay tax on your wages via PAYE, then pay them to a company. This company then pays your expenses and pays 19% corporation tax on those earnings after expenses. Then you pay either 7.5% tax or 32.5% tax to take the money back out of the company.

Instead of being taxed on your wages once you're taxed on them three times and you still have to pay the same expenses.

Or perhaps that's not what you meant to suggest, however if it's not what you meant you'll need to revise your question.

Thanks (0)
ALISK
By atleastisoundknowledgable...
30th Sep 2021 09:53

Can you? Yes
Should you? No
Can you do what you meant to ask? Probably not.

Thanks (2)
avatar
By pauld
30th Sep 2021 14:16

This post brightened up my Thursday afternoon. You cant help but admire some people on their crazy ideas.

Thanks (0)
Replying to pauld:
avatar
By Welder12
01st Oct 2021 10:06

*This comment has been moderated.*

Thanks (0)
Replying to Welder12:
avatar
By Leywood
01st Oct 2021 12:21

That lack of knowledge is EXCATLY why you should pay an Accountant, who has trained for YEARS to get their knowledge, rather than asking a bunch of strangers on the internet, who cannot answer in full as they dont have all of the facts. But either way there really is no need to be sweary at someone who is using this forum for what it was meant for ie Accountants exchanging info, not people wanting free advice.

Thanks (0)
Replying to Welder12:
Stepurhan
By stepurhan
01st Oct 2021 14:55

Welder12 wrote:

It's actually called ignorance...


The blue-chip company employed you. All of the paperwork filled out for it would have been in your name. All the payslips for that will be in your name.

Asking if you can funnel income that is labelled as yours personally from end to end into a company is a bit more than ignorance.

Even if it wasn't, this is hardly a simple question suited for a free online forum. A moment's thought on the matter would have told you that.

Thanks (0)
Share this content