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Tax return

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Ok I doubt anyone will even look at this topic, its soooo boring, but I still need information and Ive looked all over the internet; its evading me like an 8 year old at bath time.
Basically Im self employed and want to get as much allowances on my tax return as possible but Im not sure what I can claim and how much. I know the basics like clothing and tools maybe alittle fuel, but Im hoping a pro can help.

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    To be boring and official sounding (Bloody proffessional organistainol guidelines), it really does depend on what work you do and different things would therefore be acceptable. But the general inland revenue guidence is that is must be nessacery and be work-only related. I can look up in my text books and give you a slightly more comprehensive list if you would like.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    To be boring and official sounding (Bloody proffessional organistainol guidelines), it really does depend on what work you do and different things would therefore be acceptable. But the general inland revenue guidence is that is must be nessacery and be work-only related. I can look up in my text books and give you a slightly more comprehensive list if you would like.
    That would be nice thanks. Im a builder by the way.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    For instance, if you were to have a lunch with a mate in a pub, you can write it off as a business lunch (and the petrol you used to get to the pub).
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Expenses must be 100% business related - not lunch with a mate. If it was a business lunch with a potential client then yeah, it would be allowable. Expenses claimed must be wholly and necessarily incurred by your business.

    Fuel expenses are a bit different - you can either claim under the fixed rate mileage scheme, where you claim a set rate per mile which incorporates petrol, wear and tear and MOT etc, or you can claim the actual expense incurred. If you use for car for domestic purposes to you need to work out the percentage split between business and domestic and apply to to the total.

    You don't have to submit the receipts / proof with your tax return but bear in mind, should you be investigated at any point in the following six years you will need to be able to back up what you entered on your return.

    If your annual turnover exceeds 15k you need to analyse your expenses, but if it's less than 15k you just lump them all in together (turnover - expenses = profit/loss)

    Don't forget to include the tax already deducted on your CIS25's (if you do subcontracting) on the self employment page.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Expenses must be 100% business related - not lunch with a mate. If it was a business lunch with a potential client then yeah, it would be allowable. Expenses claimed must be wholly and necessarily incurred by your business.

    Fuel expenses are a bit different - you can either claim under the fixed rate mileage scheme, where you claim a set rate per mile which incorporates petrol, wear and tear and MOT etc, or you can claim the actual expense incurred. If you use for car for domestic purposes to you need to work out the percentage split between business and domestic and apply to to the total.

    You don't have to submit the receipts / proof with your tax return but bear in mind, should you be investigated at any point in the following six years you will need to be able to back up what you entered on your return.

    If your annual turnover exceeds 15k you need to analyse your expenses, but if it's less than 15k you just lump them all in together (turnover - expenses = profit/loss)

    Don't forget to include the tax already deducted on your CIS25's (if you do subcontracting) on the self employment page.
    You seem to be talking sense, and know alittle. Im not a total laymen Ive been filling them out for over 5 years, but I've never bothered claiming my allowances.
    I know the tax man uses a formular and if your rebate seems alittle high at the end of the year he's more likely to kick up a fuss i.e investergate me. Ive got most of my fuel reciets but basically I want to know how much I can claim on allowances without the tax man investergating me, everything about me is sound but I was investergated 2 years ago because I misplaced a decimal point, or some mojo, takes forever and sucks big time.
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