Self employed expenses

alun4

Truemanbrown wrote: »

There is no benefit-in-kind on a self employed person on the provision of a car.

Could you explain this a little , please ?

Separately, I wonder if there are any thoughts on a "crossover" vehicle? For example there is not a lot of difference between a top spec Privacy glazed Mercedes Vito Dualiner Sport (there was even a Barabus Sport, I think)and a Mercedes Viano !

malc_b

Truemanbrown wrote: »

The regime for a self employed claiming expenses is different from directors and employees. The self employed can only claim expenses which is wholly and exclusively for business purposes.

This is a bit confusing since it seems to suggest that directors and employees can claim expenses which are not "wholly and exclusively for business purposes". My understanding is that the the rules are tighter for directors and employees so did you mean to put "The employed" rather than the "self employed".

As an example self-employed could claim 50% of home phone rental if the home phone is used for 50% business use but employed can never claim that, only for a 2nd phone if exclusively for business.

Also, in the home office costs claimable I believe the full list is a proportion of heating, electric, water, council tax, rent or mortgage interest.

malc_b

We're at slightly cross purposes. I wasn't thinking about any cases where you get taxed as benefit as it then there is no net benefit.

So for claiming phone rental, self-employed can do that as a business expense but a director cannot, is my understanding.

And the claiming for home office, you had missing off mortgage interest on your list, was my point.

I'm interested in the £3/day figure for a director working for a home office. Do you have a link to HMRC rules which gives that? It is dependent on having a real office or can it be claimed if home office is the only office?

e-ccountant

Tebheag wrote: »

Find a tax person not just an accountant so many people these days have done courses and are suddenly specialised in doing tax.

I think that the key is to employ a Qualified Accountant with a recognised body.. e.g. ICAEW, ACCA etc

I have had many dealings with clients who have previously had their tax affairs dealt with by unqualified accountants coming to me with significant tax errors spanning a number of years.

whiteclaw

I just filled mine out. I keep a record, don't claim for office space, just the usuals of stationary, petrol, clothes, anything work related. It just gets crazy if trying to claim office space and such.

I then deduct the personal allowance, and then on the rest pay the tax. I pray I have done nothing illegal, I think all the books are in order.

Leasing a car for the business but also using for personal use is not something I would do. I prefer to keep everything separate. How do you prove 70% use for business etc?