A lot of people run away with the odd idea that you claim back your costs,from the tax-manTHIS IS A FALLACY, IT'S WRONG
what you do claim. is the right to have that amount of your income added to your tax-free allowance. you just earn the allowable expenses tax-free, the taxman gives NOWT.
AFAIK, you still pay N.I on your actual earnings, after allowable expenses.
there is some room for manoeuver with a limited company,in that dividends are taxed differently to earned income, but Mr. Revenue is in dire need of every penny he can screw out of the taxpayer...not sure if he hasn't plugged that loophole already.
You will not get more than you earn....under PAYE , you are effectively assessed as if you will continue to earn the same for the rest of the tax-year, as you've earned to date...thus your average pay for the year is recalculated every pay-period....say you earn 10K a month for the first 3 months ...you're taxed as if you're earning 120K...so a goodly chunk will be taxed at higher rate.....so you're made redundant and 3 months later, restart worka few days before payday....your averageis only 60K per annum , but you paid higher rate tax on a much higher proportion of salary , than you would have done, had you earned at the same rate over the whole 6 months...so you get a rebate to reflect the overpayment.
Self-employed, you settle your bill once a year (though i believe you now make Quarterly "stage-payments" Generally you pay less tax.....you also get no sick pay, no holiday pay, no job security and usually no perks from your "employer" no doubt someone will correct my errors, but it will hopefully correct this impression that the self-employed get largesse showered upon them by the Revenue.