self employed as an estimator/ designer (electrical) working from home most of the time with a couple of trips to the main office a week.
2007-07-15 04:18:59 · 5 answers · asked by peter e 1 in Business & Finance ➔ Taxes ➔ United Kingdom
There is no magic list that tells you what are allowable deductions for tax purposes. The basic rules are that you cannot claim anything that is not wholly and exclusively for the purpose of your trade or profession and the amounts that you claim must not be capital.
'Capital' means any amount that you spend on a asset employed in your trade that is used for the purpose of earning income, but that you do not pass to another (like stock you sell). For example a drawing board. You buy a drawing board to draw plans - you will keep this, you don't sell it on to make a profit and you do not work as a dealer in drawing boards.
So with these basic rules, you know that you can't deduct the cost of a motor vehicle, but you can claim the cost of fuel to travel to jobs. If you are contracted to work from a office that is not your home then the travel to the office is a personal expense, but if you get a contract where it states that your 'office' is your home then any business related travel should be allowed. Keep a business mileage record your travel to jobs - keep receipts for all your fuel. At the end of the period of self employment you will need to work out how much of the mileage is private and reduce the claim for fuel/car servicing proportionately - so if you have £100 of fuel receipts and you only used your car for business 25% of the mileage you've done - then claim £25 fuel.
Also available is a relief called capital allowances which helps ease the cost of capital expenditure.
I would recommend that you visit a small local account and get a quote for him to do your books and complete your tax return. For a couple of hundred quid it is less hassle.
2007-07-17 05:38:59 · answer #1 · answered by notmarriednochildren 4 · 0⤊ 0⤋
Have a look at page 8 of the link below. This is the Revenue notes to help you complete the self-employment pages of the tax return.
Some of the descriptions are a bit vague but they should get you started.
You will also need to look at the sections relating to capital allowances if you have any equipment (such as a computer) used for business.
2007-07-15 06:01:48 · answer #2 · answered by tringyokel 6 · 0⤊ 0⤋
Get an accountant, now!
Absolutely anything and everything is tax deductible, EXCEPT all those items listen in the HMRC manual. See Tolleys Income Tax for a full list. It is a very long list!
2007-07-15 10:56:48 · answer #3 · answered by Do not trust low score answerers 7 · 0⤊ 1⤋
You MUST get an accountant right now! Trying to figure this out yourself is a bad idea.
2007-07-15 04:25:52 · answer #4 · answered by terje_treff 6 · 0⤊ 0⤋
anything you spend which is connected to your business. i.e. purchases,travel,etc
2007-07-15 04:22:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋