Self Assessment Tax cutting

meames_2

Hi just a couple of questions.

I fill in online surveys at home and am therefore liable to do a self asessment. i would like to reduce the amount of Tax I have to pay.

1. I will claim a portion of my broadband, but what kind of proportion of Gas /electricity can I claim as an expense?

2. I needed to buy a new computer to do this. I was using a borrowed one from work. can i claim anything for the costs of that?

Thanks

michelle

laticsforlife

meames wrote: »

Hi just a couple of questions.

I fill in online surveys at home and am therefore liable to do a self asessment. i would like to reduce the amount of Tax I have to pay.

1. I will claim a portion of my broadband, but what kind of proportion of Gas /electricity can I claim as an expense?

2. I needed to buy a new computer to do this. I was using a borrowed one from work. can i claim anything for the costs of that?

Thanks

michelle

With regards the sums you make; are you sure its enough to actually pay tax on?

If it is, OK then, read on.

You are self-employed, so are you registered as S/E? If not then you need to do so and pay Class 2 National Insurance Contributions (unless again the amount you earn is low then you can get an exemption)

As for the portion of Broadband, I'd say this was a bit tricky, as it's not like you can say that this call cost this much and so I'll claim it, but this call cost this much and it was private (like in the old days of dial-up). You'd need to keep a log of all your access time and apportion it for the time you spend working, and claim that proportion (or do a log for a sample month, then apply that percentage as an average, I'm sure HMRC won't worry too much if you do that).

As for the Computer, if you bought it for use in the business then you can make a claim for it, BUT not directly against the income, as it is a capital item (i.e it is used in the business, and not to sell in the business, akin to a shopkeepers stall, and not his fruit and veg.)

Capital Allowances is the route here, and I can't go into it to much except to say that you used to be able to get 100% for IT in year1, but I think that's no longer appropriate?, so it would be 40% of the cost on a reducing balance basis.

Gas and electric - unless you have an office set-up then I'd say you can't claim anything, as you pay those bills regardless of whether you are working their or not. Otherwise you could apply the same logic to water rates and Council Tax to name but 2.

laticsforlife

john_c wrote: »

Are you sure about this?
I was reading up on allowances a few months back and there was a mention of a monthly allowance for electricity and gas for self employed people working from home.

I stand corrected if there is, my knowledge is a bit historical so things do change.

Would be favourable to 'small business', so I wouldn't be surprised if it were true.

meames_2

thanks for replies.

I am registered as self employed, I am exempt from NI class 2 contributions because I don't earn enough through this.

I do have to pay tax because I have a proper job too. although I am wondering if its worth all the hassle for what amounted to £300 . unfortunaltly because the online survey normally pay in vouchers - finding the money to pay the tax is hard, unless HMRC took amazon vouchers!

I got my broadband as part on a previous self employment (however I mostly had dial-up so it was much easier to keep track of!).

laticsforlife

£300 - damn, I don't nearly make that much from my surveys !

If you did some apportionment, I'd bet you could get that £300 down to virtually nil (for tax).

As for your honesty, it does you credit, although I think the casual nature of the 'work' would not make it a vocation, and HMRC would have likely ignored it.

It is more work to set you up and process all your forms, etc than you would ever pay in tax.