Business insurance costs can be reclaimed through your business and are eligible for Corporation Tax relief.
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Can I expense Conference expenses?
Yes, you can claim the costs of attending business-related conferences as a deductible expense.
Who is liable for damage caused by a defective product?
The party that is held liable will depend on the circumstances of each individual case.
If the injury was due to negligence, the party who was negligent will be held liable.
If the injury was caused by a defective product, the "producer" of the product will be held liable. This is generally the manufacturer. In the event that the manufacturer can't be traced, has gone out of business or is located outside the EU, the importer of the product-such as the distributor or supplier-will be held liable.
A party that places its trademark on the product may also be held liable.
Public liability claim examples
Public liability insurance claim examples:
1. Claims made against an electrician:
An electrician was engaged for the installation of a heating system in a commercial building. However, the installation was incorrectly done and caused a fire resulting in damages to the property, which amounted to £50,000. The electrician's insurance policy covered the cost of damage.
2. Claims made against a furniture assembler:
A cabinet that the furniture assembler had fitted fell from the wall, and caused injury to another contractor. The furniture assembler was required to pay just £250, as his insurance policy was able to cover the majority of the costs (£25,235).
Can I expense Entertainment or Dinners?
You can't claim for the costs of entertaining clients, suppliers and customers.
Can I expense Ebay charges?
Yes, you can claim eBay fees, such as the insertion fee and final value fee as deductible expenses.
What is a contractor?
A contractor is a professional that provides skills and services to a specific client under set terms. The terms can be for a set number of hours, a certain time frame or duration of a project.
A contractor is responsible for their own dealings and has discretion over the work they carry out.
What are the disadvantages of contracting?
The disadvantages of contracting are:
- Uncertainty: Due to the flexible nature of their working relationships, contractors aren't guaranteed work after the end of assignment or project.
- Responsibility: Not only is it the responsibility of the contractor to find work, they are also responsible for their own finances.
- Employment rights: As a contractor, you generally wouldn't find yourself holding employment rights that permanent employees benefit from.
What is an independent contractor?
An independent contractor is an individual who is engaged in a work agreement with a company or entity as a non-employee.
Factors that identify an independent contractor are:
- They have a greater degree of control over their work
- They offer a special skill set
- They are able to get a replacement
- They aren't entitled to employment benefits
Do I need employers' liability insurance?
For most employers, it is mandatory to have at least £5 million of employers' liability cover, or face a fine of up to £2,500 per day. There are some exceptions to this rule, however: most public organisations and businesses that only employ close family members (as long as they're not incorporated as limited companies) don't necessarily need to have employers' liability insurance.
Can I claim using the cycle to work scheme?
Employers who purchase bicycles and safety equipment for loan to employees can benefit from treating the purchase as capital expenditure eligible for corporation tax relief. VAT can also be claimed back on the purchase unless you are registered on the VAT flat rate scheme.
The loan of bicycles and safety equipment under the cycle to work scheme removes any tax charge to the employee that would usually arise on a taxable benefit.
How much does business insurance cost?
The cost of your business insurance depends on the nature of your work, the type of insurance you need, and your cover levels. Businesses that are perceived as riskier will usually pay a higher policy price.
Public liability insurance vs general liability insurance
Public liability insurance covers compensation claims made against your business by a third party for injury or damage. For example if a supplier trips on a trailing cable in your shop, or if you visit a client and spill coffee on their computer.
General liability insurance isn't available in the UK.
Difference between public liability and employers' liability
Both public liability and employers' liability insurance are business covers that can pay out if your business faces a compensation claim for injury. The difference is that public liability insurance covers claims made by a third party (i.e. a member of the public like a client, customer, supplier or passerby), while employers' liability insurance covers injury claims made by an employee.