self employed

joanne_d_3

zygurat789 wrote: »

Apportionment is only a rough rule of thumb method of arriving at what is wholly and exclusively allowable. I would consider the alternative method as proposed in #4 above to be a much more accurate and legal method, you would need to have documentation on the quotes for private insurance only.
I would, of course, compare the two methods to see which was the more advantageous before I opened my mouth

Hi again .

The insurance we paid on the car for private use was something like...£450

The cost of the insurance for taxi use is ....... £770


So a difference of £320 which means if i do the sums as Rolo suggested in post 4 i would be counting the £320 as the amount of allowable expense.

BUT if i do it the way i had originally intended (i.e cost yearly cost of insurance divided by 365 days then multiply by number of days worked) my allowable expense would be approx £500 !

BUT being new to this lark , i dont know if there is a particular/legal way of doing it !

joanne

taxi73

You have paid £770 per year for taxi insurance..so it is regardless how many days you work as you have paid that amount anyway ..so £770 is deductable.
I do my own books and then my accountant submits them online.A good accountant is worth their weight in gold.

joanne_d_3

taxi73 wrote: »

You have paid £770 per year for taxi insurance..so it is regardless how many days you work as you have paid that amount anyway ..so £770 is deductable.
I do my own books and then my accountant submits them online.A good accountant is worth their weight in gold.

See Taxi73 , this si whats confusing me.

Some people are saying that as the car is only being used as a taxi SOME of the time (i.e some weeks it will be 2/3 days other weeks 4/5 days) i can only claim a propotyion of the insurance back as an expense.

Fengirl told me this in one of the previous posts in this thread and if i remember correctly , other posters confirmed what she said.

If you read through my post from the start you will see WHY i dont want to get anything wrong !

I suppose in a way it does make sense....an expense can only be "allowable" if it is soley for the use of the business.....and if the cars being driven privately on the days my husband aint taxi'ing then i cant expect HMRC to allow it lol.

Any other snippets of advice for me from your taxi'ing experience ?

Thanks again . I appreciate your help .

joanne

zygurat789

joanne_d wrote: »

Hi Zygurat789.

lol you can tell im new to this cant you ?

I was meaning the self assesment .

Theres no chance of hubby employing me so we dont need an accountant to work THAT out !!

Are you self employed ?.......A taxi driver ?

Thanks for taking the time to reply

joanne

The two main reasons why your OH wouldn't employ you are:-
1. He pays no tax and class4 NI.
2. You pay tax at 40%
Otherwise you could save tax if he employed you to do the books, answer the phone, do the SA etc, etc.

I am self employed but not as a taxi driver

zygurat789

joanne_d wrote: »

See Taxi73 , this si whats confusing me.

Some people are saying that as the car is only being used as a taxi SOME of the time (i.e some weeks it will be 2/3 days other weeks 4/5 days) i can only claim a propotyion of the insurance back as an expense.

Fengirl told me this in one of the previous posts in this thread and if i remember correctly , other posters confirmed what she said.

If you read through my post from the start you will see WHY i dont want to get anything wrong !

I suppose in a way it does make sense....an expense can only be "allowable" if it is soley for the use of the business.....and if the cars being driven privately on the days my husband aint taxi'ing then i cant expect HMRC to allow it lol.

Any other snippets of advice for me from your taxi'ing experience ?

Thanks again . I appreciate your help .

joanne

You have to show in your SA the total cost of the vehicle.
Then you admit that some is a private and not a business expense.
Now you have to ascertain the split. It cannot and never will be accurate to the penny. HMRC will accept a reasonable apportionment. Business miles/total miles is a reasonable apportionment.

joanne_d_3

zygurat789 wrote: »

You have to show in your SA the total cost of the vehicle.
Then you admit that some is a private and not a business expense.
Now you have to ascertain the split. It cannot and never will be accurate to the penny. HMRC will accept a reasonable apportionment. Business miles/total miles is a reasonable apportionment.

Hi again.

lol , i guess i wont get any more accurate than counting the taxi insurance down to the very DAY !!

joanne

Thanks again by the way.

greenandblue9

Hi All
I am new to this forum so please excuse any questions I ask if they have been dealt with in a previous answer. I have registered as a self employed electrician today. I have bought a lot of tolls etc in the last year in prep for this. I also bought a van in May last year in prep for going down this route. Am i right in thinking that if i have reciepts for tools bought i can clain there full total against any tax i will pay when the time comes. I bought van for £4000 and think it is worth approx £3000 to £3500 at present time. Can i put this value against tax as well meaning if my van and tools are worth say £5000 does this total come off my gross income before i then pay tax. Any help would be much appreciated.

joanne_d_3

Jimmo. Once again thanks for your help.

Your post makes a lot of sense so thanks.

Your last paragraph says there is a possibility that HMRC will ear mark our case for future possible investigation.....to be honest , as we are doing nothing wrong , this is a fact that doesnt really bother me....people who have nothing to hide , hide nothing.

They could dig as deep as they like , but theres NOTHING to find , so no problems there !

Hopefully , withing the next few weeks as business in the area picks up , hubby will beging working more hours so thats maybe a good thing in terms of he wont look so suspicious to HMRC .

We live in a smallish estate and thats were the taxi rank is based , generating mostly business from the locals of the area , hence the reason for only working two days at the min...its only a very small business lol.

hopefully though , more days will become available soon.

thanks again Jimmo