Allowable Expenses

[Mesterh]

Heres a link HM Revenue & Customs: Rates and Allowances - Income Tax

 

Unless your an old bogy then you can claim more

 

Oh and try not to earn over 150K next year eh!!

[gensetsteve]

You dont pay tax on about the first 5k profit. You can pay your wife 5k as well without paying tax or national insurance. You pay your wife for answering the phone, doing the books, washing your work wear and listening to your moaning ( consultancy ) and any thing else you can think of. A few years back you only paid 10% on the next 5k but the Labour government stuffed that along with the huge increase in nat ins about 5 years ago.

 

Earning 21k you should be eligible for family tax credits. If it does not sit right with you think of it as legal income tax recovery

 

The Labour government promise was to top up your wage to 24k if you had children.

[Dean Lofthouse]

So my accountant has worked out tax on the whole £21K

 

Thats an error I would make, not what you'd expect from an accountant

[gensetsteve]

With national insurance it will be nearer 25%

 

If you think it hurts now try paying 40%

 

10 years ago I earnt 70K and paid two lots of 10k the following year

[Albedo]

Sounds like you don't need the accountant dean unless you need audited accounts for a loan or something.

 

As it stands you could put your numbers in the online tax return and it calculates the 6k ish allowance for you anyway.

 

So were at the stage now with this thread where you still need the magic allowance that would legally allow the keeping of some profit without the paying of tax on it.

 

I thought that accountants were supposed to find ways of doing this legally.

 

By the way, didn't you put up a similar thread to this last year:001_smile:

[Dean Lofthouse]

By the way, didn't you put up a similar thread to this last year:001_smile:

 

I cant remember but if I did I think I should have learned my lesson then

[18 stoner]

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

 

Sorry, i didnt realise you were being sarcastic by saying "good"!

 

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?

 

NO, NO, NO!

 

My wife does my book keeping, she is not paid, but the accountant claims an allowance for her time spent doing them!

 

And dont ask how he does that, i dont know, he is the accountant!

[firewoodman]

mate of mine buys booze by the case and pays for restraunt meals through the business and writes it off as entertainment and gifts for customers....................even though it was all for him, same for partys etc, hotel rooms, weekends away

[Mesterh]

You can pay your wife 5k as well without paying tax or national insurance.

 

Is it only your wife you can do this with?

 

If so any ideas why?

 

And why?

[Mesterh]

mate of mine buys booze by the case and pays for restraunt meals through the business and writes it off as entertainment and gifts for customers....................even though it was all for him, same for partys etc, hotel rooms, weekends away

 

Lol this is most definitely fraud.

 

You could also tell him to write blag invoices out for uneeded work ie someone charged him 2k to service machines, 1k to jet wash his yard, 30k for subbie work etc.