Allowable Expenses

[Dean Lofthouse]

Dean , I was just wondering how I might be of help as I think its a fair enough question.

 

I wonder how proactive are you in the process?

 

Do you hand the accountant a big box of receipts or do you sort them out first.

 

I go thru my receipts every 2 weeks or so and put them into columns on a spreadsheet for fuel, van maintenance, stationary etc.

 

This way you have a running total of your expenses against income and know where you stand in advance.

 

I don't claim for anything that isn't obvious, which is your actual question, but thought you might find this approach helpful. You don't have to know much about spreadsheets, it just adds up the columns for you with the autosum button.

 

This could reduce your accountancy fees too. I don't use one myself and just submit the numbers from my spreadsheet on my tax return

 

Paul, I use simplex D account books and file all the receipts in order inbetween each page and put everything down in the columbs, I just dont add up the totals. Everything I know is done for him and to me all he has done is add the totals up and send them in.

 

Thats why I asked him why I am paying him, I have already done all that

[arbclimber]

Ian,

 

I know you were joking mate, I did wonder if I got too involved in the marketing thread if people would think i'm just trying to get work. Its not the case, Nobody knows who I am, and I havent even put my web Address as my signature. At some point I might reveal my contact details I suppose ( if anyone is interested) but for now I just see it as helping out the blokes, who I chat to online:thumbup1:

 

I'm sure someone on here will tell me something I didn't already know, or hadn't thought of, so its a learning experience for me too.

Edited April 30, 2010 by arbclimber
added name

[Ian H]

Paul, I use simplex D account books and file all the receipts in order inbetween each page and put everything down in the columbs, I just dont add up the totals. Everything I know is done for him and to me all he has done is add the totals up and send them in.

 

Thats why I asked him why I am paying him, I have already done all that

 

Dean I do exactly the same and accountants view is that he submits accounts to the revenue, authorises them, and fingers crossed this meens they don't question the legitimacy,hopefully the loopholes they know outweigh their fees although you've gotta wonder sometimes, my accountants view is better to make profit and have to pay tax on it than no profit at all, distorted logic IMO what can you do as a sole trader my salary comes out of net profit!!

[Mesterh]

Not really sure what you mean by that?

 

 

 

What I meant was sneaky/dodgy ie 'good' accountants claim for stuff you havent spent on and move expenses around so they look better

 

My accountant puts in an "allowance" for the work my wife does, although she is not paid. Perfectly submissable.

 

Do you mean you can say you spent xx amount paying your wife so you can claim the tax back but you dont pay your mrs?

Edited April 30, 2010 by Mesterh

[Dean Lofthouse]

Do you mean you can say you spent xx amount paying your wife so you can claim the tax back but you dont pay your mrs?

 

We're going to be nick naming you Richard Branson soon mate

[Mesterh]

Thats not a problem if she was working, my daughter could do them instead. The point here is there are totally legal and allowable expenses, that was just an example

 

There are loads of things we can legally claim for that we probably dont but you do have to make sure that they are allowed ie your thread:001_smile:

 

 

What I was saying is you cant make a profit and not pay any tax unless the accountant fiddles the books.

 

My goal as a business is to pay as much tax as possible since that means I have made loads of profit.

 

Not like this year where I paid bugger all tax because I brought hardly any money in.

 

I just hear quite a few people saying my accountant is great I only pay around 6 pence in tax every year.

 

They either have a very poor business or they are on the fiddle and wont be happy if they get caught.

 

Besides 21K profit isnt bad at all, I would be well happy with that, well obviously depends if you take a decent wage too.

[Dean Lofthouse]

No your wrong again, it is possible to make a profit, not "fiddle" the books and only clain totally legal allowances and not pay any tax.

 

I made £21k profit and paid 20% income tax on that profit.

 

Correct me if I'm wrong but I was under the impression you dont pay tax on the first £5k or is that the first £5k earned and not profit

[Mesterh]

No your wrong again, it is possible to make a profit, not "fiddle" the books and only clain totally legal allowances and not pay any tax.

 

I made £21k profit and paid 20% income tax on that profit.

 

Correct me if I'm wrong but I was under the impression you dont pay tax on the first £5k or is that the first £5k earned and not profit

 

Are we talking profit here or income?

 

You get the first 5k or something around there tax free on your income not on your profit as far as I know.

[Mesterh]

Actually I think its more around the 6.5k mark.

[skyhuck]

No your wrong again, it is possible to make a profit, not "fiddle" the books and only clain totally legal allowances and not pay any tax.

 

I made £21k profit and paid 20% income tax on that profit.

 

Correct me if I'm wrong but I was under the impression you dont pay tax on the first £5k or is that the first £5k earned and not profit

 

You only pay tax on your profit mate and as you say you have a tax free allowance.