claim back expenses

keithpb69

hi, i've been working self employed since start of november, just doing handy man jobs on peoples houses and gardens..

i paid about £2700 on tools and equipment to get started and have so far averaging about 300 miles a week driving to and from jobs, as i didn't have any savings behind me money is a bit tight, i have been told i can claim back expenses and i could get all petrol covered.. am i able to claim this back straight away or do i have to wait until i fill out a self assesment?

thanks.

TM1976

This isn't true. The best you can do is claim tax relief on them, but as you haven't paid any tax as yet this isn't likely to get any extra income for you.

It's important that you keep a record of all this expenditure so you can reduce your tax bill when it's due.

Have you told HMR&C that you have started to trade as you have to do this within 3 months?

keithpb69

thanks, yes i have registered self employed, someone told me that they were self employed and got there tax on there travel expenses back part way through the year! not sure what they were on about then!!

PlutoinCapricorn

If you have been self employed since November 2009, then your first self-assessment can be submitted any time shortly after 6th April 2010 and 31st January 2011. This gives you some time to get to grips with the expenses aspect.

If you haven't already done so, take a look at https://www.businesslink.gov.uk:
they provide free information, advice and workshops for sole traders and other people with their own business.

It is important to issue invoices to your clients, and to keep receipts and records for all business purchases, costs etc.

You can't claim back any money spent on tools etc. but you can deduct business expenses from income to arrive at your profit, which is what you will be taxed on.

Some things will be capital items which depreciate, others will be running costs. You need to decide what you have bought that you would not have if there was no business, and what you are using extra of because of your business. If you do a lot of paperwork and client contact from home, you can put a proportion of electricity, internet etc down as expenses.

There are guidelines for travel costs: it depends on your circumstances.