Self employment what counts as expenses

tweenie1

Just been sorting my husbands accounts for him and wondered what he can actually claim as expenses

He works washing out the market after cattle and sheep sales and also does work during the market droving the animals.

He currently invoices the auctioneers with how many hours he has worked in the month and they then send him a cheque. There are no deductions made from this.

Can he claim for the waterproofs he uses as it is a very wet and smelly job?
I know he can't claim fuel for getting to one place of work but can he claim milage allowance when he has been asked to travel to a different site for example when there is a farm dispersal sale.
Are there any other things he can claim for?

Ive done £3 a week for filling in paperwork but know that work wear can be a funny area but as he can get through at least three pairs of wellington boots in a year due to them perishing with the water, Im just curious as to what the general consesus is.

Thanks

chunkychocky

I'm sure an expert will be along shortly, but my hubby was told that as long as something is wholly and necessarily for work then it can be counted as an expense.

tweenie1

Thats why I was wondering about the waterproofs and wellies as he wouldnt use them anywhere else

PlutoinCapricorn

This is a very interesting and unusual area of work - I can't remember seeing posts from any other people involved with cattle!

The general rule is, what has he bought/used more of that he would not have done if he had not been self employed?

Where clothing is concerned, a question is whether or not you could wear it in normal circumstances. So smart business clothes for example, while essential, are not tax deductible. Normally protective clothing is tax deductible as it is essential.

If his income is less than £60,000, you just need to give the figure for total expenses to HMRC, not list the items individually. So you can claim for the boots etc, but have receipts and a good case for claiming for them ready just in case HMRC ever ask for further information.

antrobus

chunkychocky wrote: »

I'm sure an expert will be along shortly, but my hubby was told that as long as something is wholly and necessarily for work then it can be counted as an expense.

Hubby was told the truth. The man down the pub was right for once.

tweenie1 wrote: »

Can he claim for the waterproofs he uses as it is a very wet and smelly job?

Protective clothing is OK. Even PAYE employees are allowed to claim for protective clothing. As in;

A deduction can be permitted for the cost of genuinely protective clothing that is worn as a matter of physical necessity because of the nature of the job and where the employee must bear the cost.
http://www.hmrc.gov.uk/manuals/eimanual/eim32470.htm

tweenie1 wrote: »

I know he can't claim fuel for getting to one place of work but can he claim milage allowance when he has been asked to travel to a different site for example when there is a farm dispersal sale.

The cost of travel to a temporary workplace is OK as well.

tweenie1

Thanks for all the advice seems Im on the right track then. we aren't talking huge sums of money below £15,000 before expenses.
Ive got receipts for most of the things the only things missing receipts are when we have picked up things like gloves at markets stalls would this matter?

The other thing is he bought a quad and trailer second hand to use down there and it is solely used for this purpose would he be able to claim for that, this is the first year he has done properly only did a month in 2010/2011 so nothing deductable at that stage as he had only just started.

HappyMJ

tweenie1 wrote: »

Thanks for all the advice seems Im on the right track then. we aren't talking huge sums of money below £15,000 before expenses.
Ive got receipts for most of the things the only things missing receipts are when we have picked up things like gloves at markets stalls would this matter?

The other thing is he bought a quad and trailer second hand to use down there and it is solely used for this purpose would he be able to claim for that, this is the first year he has done properly only did a month in 2010/2011 so nothing deductable at that stage as he had only just started.

My non expert opinion...yes...if the quad and trailer is used in the business then it's fine. It would be hard for a tax inspector to refuse that one.

Small items without receipts are OK but do try and get some evidence such as a photo. Tax inspectors do allow some small non receiptable things through....just don't go overboard with it or they'll disallow the lot.

tweenie1

thanks will take some photos as well then seems a bit silly asking for a receipt on a market stall but suppose it wouldnt hurt.

PlutoinCapricorn

Where gloves are concerned, and perhaps even boots too, you can get some good bargains on eBay - and the emails/PayPal deductions will be your evidence.

What about a stick and hat? What about cleaning materials for the workwear?

Savvy_Sue

tweenie1 wrote: »

I know he can't claim fuel for getting to one place of work

antrobus wrote: »

The cost of travel to a temporary workplace is OK as well.

Well, I stand to be corrected, but while this is correct for employees, I thought it was different if you were SELF-employed and regularly traveled to one place of work. In other words, that you could claim for ALL your 'business' miles, with various different ways of doing the sums.

And I'm going to throw in another query: is your DH sure that he should be self-employed? Bear in mind this is not HIS decision, or the decision of the auctioneers, but HMRC's decision. See here.

tweenie1

PlutoinCapricorn wrote: »

Where gloves are concerned, and perhaps even boots too, you can get some good bargains on eBay - and the emails/PayPal deductions will be your evidence.

What about a stick and hat? What about cleaning materials for the workwear?

I have got some paypal receipts off ebay which i have kept but wondered about cleaning the workwear as wasn't sure if this would class as general washing which would be done anyway or not.

They have to be washed seperately anyway as they are not pleasant smelling before washing!