Allowable Expenses

[Kev Stephenson]

Dean,

 

As previously stated you cannot pay someone £5k tax free who already works and therefore claims their tax free allowance from another employer. You could pay your daughter to do your books, your dad to clean your kit and your mother to wash your work shirts at £5k each per year tax free provided you list them as employed or they invoice you and declare themselves as self employed.

 

When you say £21k profit is that the amount you have made in the year or the amount you have left over after paying yourself a wage? Are you drawing a forces pension (or making money elsewhere) that uses up your tax allowance?

 

My accountant charges me less than £200 a year and is provided with a file with receipts in date order, an excel spread sheet detailing these receipts and a list of income for each month. That figure also 'insures' me against investigation (if i get investigated my accountant will do all the paperwork and be present at all meetings at no cost to me). She is also about 5 minutes down the road from you Dean!!!

 

There is a figure the accountant uses for home office use, this removes the need to submit gas, elec, ect bills. This is set by HMRC so is not questioned

 

All clothing for work use can be claimed for, again there is a figure that can be applied for laundering it and removes the washing machine, powder, etc from the lists

 

There is loads more, I will dig out the list from last year and let you have a copy

[Littletree]

Actually I think its more around the 6.5k mark.

 

Yep its £6475 your personal allowance . you don't have to pay tax till you have earned over this amount in this tax year , its on your net profit so its on whats left after you have deducted all your expenses .

 

I do self assessment online its a great system I submitted return yesterday and it I got my tax calculation back on the spot so I no whats mine and whats theres there is loads of help on the HMRC website for all tax matters also this site below is a great forum everything tax related.

 

[url=http://www.taxationweb.co.uk

 

Littletree:thumbup:

Edited May 2, 2010 by Littletree
my link did not work

[Curvey Burrs]

I was told bymy accountant the if Joe Blogs who was employed didn't have it then we couldn't claim, this was for personal health insurance, ie off work no pay insurance. You can draw as much as you wish from your business account, if it happens to land in an isa or kids account (non taxable) then there was nothing the tax man can do about it, bit like it used to be ie new machinery/vehicle purchase at end of tax year!

[chris cnc]

Yeh, should be fine to put through.

 

excellent

[Quickthorn]

 

My accountant charges me less than £200 a year and is provided with a file with receipts in date order, an excel spread sheet detailing these receipts and a list of income for each month. That figure also 'insures' me against investigation (if i get investigated my accountant will do all the paperwork and be present at all meetings at no cost to me).

 

Is this for a set of audited accounts? £200 isn't too bad if that's the case.

[skyhuck]

. You can draw as much as you wish from your business account, if it happens to land in an isa or kids account (non taxable) then there was nothing the tax man can do about it, bit like it used to be ie new machinery/vehicle purchase at end of tax year!

 

That is utter rubbish!!!

 

You can have NO money and still get a tax bill, its about the money have had, not where it is:001_rolleyes:

[Kev Stephenson]

Is this for a set of audited accounts? £200 isn't too bad if that's the case.

 

Full audited accounts and tax return

[skyhuck]

Full audited accounts and tax return

 

Are you sure??

 

I thought for audited accounts they have to come too you home and business address and carry out an audit (which is very expensive) I am LTD and have never had audited accounts.

[Kev Stephenson]

Are you sure??

 

I thought for audited accounts they have to come too you home and business address and carry out an audit (which is very expensive) I am LTD and have never had audited accounts.

 

Why do they have to come to your home and business address?

 

They are auditing the accounts not the colour of my sofa. They do need copies of all bank account statements which I have my name on to check all income streams.

 

I hold no stock (firewood appears as if by magic from the waste pile), so no stock takes to audit. I sell nothing but a service so what is there to see on a visit

 

The same accountant has done the books from the start so no handover to check

[skyhuck]

Why do they have to come to your home and business address?

 

 

To carry out an "audit" (there is a clue in the name )

 

Maybe I'm wrong, but I pay over £2k and mine ain't audited .