Here are the most frequently asked questions we've received from Limited company contractors in October 2021, with answers from the experts at Orange Genie Accountancy:

Guide to opening and running your limited company: click here to download>>

Have you received a letter from the Information Commissioner's Office (ICO)?

You may receive a letter from the Information Commissioner’s Office due to being a company that holds people’s personal information, the letter may request that you pay a fee. You should check if you are exempt before making any payment, you can do this here: Check if you are exempt

If you are exempt, you will need to complete the form in this link: I am exempt

What are the new late payment penalty rules for VAT?

From April 2022 HMRC will be phasing in a new way of imposing penalties for late payments. The new rules mean you won’t be charged a penalty if you pay your VAT in full within 15 days of the due date. If you pay later there’s an initial penalty of 2% of the tax owing. After 30 days from the due date a further penalty applies at 2% of tax owing beyond day 15, plus another 2% of the tax owing at day 30.

What expenses can I claim when I am non-trading?

When you are out of contract and non-trading there are a small number of expenses that you can still claim through your Limited Company. You can still claim for insurance, accountancy fees, use of home, travel to interviews for potential new contracts and training. There may be others that you can claim, you should discuss these with your accountant.

You cannot claim for expenses relating to a new employment outside of your Limited Company.