Tax allowances and reliefs if you're self-employed

AzimScot

Hi,

I am looking to start a new business and I have been shocked to find out that after 12 months you can claim from the tax office for litterally most things like, mileage, furniture, rent, equipment and even losses!

Anyone got experience in filling out HMRC form P78 is it i think and what percentage to get reclaim seen a video on youtube and said you could get 100% depending on type of business?

Thanks.

Jowo_2

A person who is self-employed can claim for many different types of business expenses so long as they directly relate to the operation of the business and comply with HMRC guidelines, there's nothing shocking or unusual about this. Genuine business expenses get offset against corporation tax, this is normal. If there are no profits in the business, then there is no tax to pay on it - again, nothing weird about that, other than if someone isn't making a profit, they may be 'escaping' tax but then they aren't actually making any money either, so clearly aren't cut out to be in business.

I can't see the value in someone telling you specifically how they completed their tax returns or similar HMRC documents. A simple book or website about how to set up a business should provide you with guidelines about how to keep good financial records, including basic accounts/book-keeping and will cover what counts as a valid business expense.

Hammyman

Doomed to failure and a day in court for tax evasion or fraud methinks.