self-emplyed sparks

[ELZ4742]

this is more an accounting question rather than a technical question but with regards expenses and capital allowances-

how dya know which come under which?
i realise that vehicles are under capital but what about drills, hand tools clothing and general day to day site use etc..

i only ask as im thinking of going down that road as ive been thrown a boat load of work and want to get as much info before i sort out an accountant.

cheers boys!

 

[DESL]

Have a look at this http://www.hmrc.gov.uk/leaflets/se1.pdf

When I was self employed I did all my own accounting using Excel spreadsheets. I still do the basic accounting now but as I'm limited Company I have to use an accountant to present company accounts.

All tools, equipment specialised clothing etc are legitimate business expenses

You can claim for part of your accomodation costs as well if you have a spare room that's used solely for the business.

50% of the value of a PC - don't go for full value if use it for recreation.

All admin stuff - stationery etc. advertising.

Have a look at the link and also go and see your local tax office beleive me they are very helpful. They made sure I was aware of everything I could claim for.

 

[ColJack]

my accountant cost me £200 to do my taxes.. i just threw a box of recipts at him once a year and he usually got me £1000 - £2000 back a year... well worth it..

they know all the loop holes, what can and can't be claimed so just leave it up to them...

also, phone line rental and bills can be partly claimed for..
your wife / mother etc can also be claimed for as a part time secretary / cleaner if she answers the phone while you are out and dusts the "office".

there are loads of "loopholes" like these, it's just knowing them..

 

[baldelectrician]

everything you spend on your (business) is deductable. As long as it's justified (no dancing girls )

As a rule of thumb tools (above the £200 mark) is a capital allowance, and equipment (vans etc)

Phone HMRC and they are quite helpful.

This year I got an accountant and he worked net profit out within £80 of what I had worked out.

 

[Chri5]

Marry an accountant, then it's easy- Oh and not all accountants are 'boring'

Claim £10 a week laundry
Claim boots, trainers and work wear
All tools
Max 10% of house bills for a home office
PC. Fax and IT equipment- 100% write down 1st year
Test kit and calibration
Mobile
Stationary
Training / update courses 100%
Subs- mags / NIC reg etc
Parking (wink) all those cash meters
Travel / van / fuel / ins (or a percentage of private car use)
Liability ins
Materials
Minor food, justified by being away from office / home for 8+ hours
Pension plan
Sickness / injury ins

I'm sure I've missed some, but that's a good start !