what can i claim tax on?

fkelanne

im just new to being self employed. And i no i can claim my fuel tax back.
What do i need to do to keep a record for the fuel i use?
Also what else can i claim back at the end of the tax year?

CLAPTON

you might like to say what sort of work you are doing; it would make guessing what expenses you can claim a little easier.

TrickyDicky101

It's worth noting that you can't 'claim the tax back' - what you can do is offset your allowable business expenses against your gross profits from your self-employment. You have to be making a profit for this to happen and it is possible when you first start out that you may well not be making any money - in which case you have nothing to offset against (the losses can be carried forward to future years though).

SeniorSam

As self employed, will you not be employing an accountant who can help you with this and possibly save you more than his fees?

Sam

GlynD

In addition to contacting an accountant I strongly suggest you do two things.

1. Install a double entry book keeping program on your PC and put everything into it. All your invoices and all your outgoings. Discuss which system with your accountant because you need to be sure he can read your backup files. Sage is a fairly common one but it is quite expensive, starting at around £650.
2. Get yourself an account with the fuel company you use most. The alternative to doing this is to ensure you keep a receipt for every drop of petrol you buy.

You need to see book-keeping as an essential part of your business. It's not all about sales. If you do it right you'll save yourself a fortune, and a lot of headaches.

jamieukonline

You need to track all business expenses. Allowable business expenses will reduce your profit and therefore your tax.

You need to decide whether to use an accountant. You do not have to, but it will be easier.

If you do it yourself, I'd recommend creating your own spreadsheet, or use TAS Basics accounting software (free).

Allowable expenses include:
Cost of Goods bought for re-sale
Car & Travel (suggest fixed rate mileage - 45p per mile for first 10,000 miles, 25p there after (rate as of 6/4/11). Just keep a record of each trip - eg number of miles, date, reason for journey. You do not need to keep receipts for every drop of petrol.
Wages to staff
Rent, rates, power & insurance
repairs
interest on loans, overdrafts
Telephone, stationary & office
Advertising, professional costs, training

See what you think might apply - you will need further advice on these so please let us know!

There are also capital allowances you can claim for large purchases