Self employed - vehicle and tax return help!

PH1LL

Hello

I am self employed and earn approx £52k per yr.

I work from home and travel to peoples houses onappointments, here are my questions:

If I choose to buy a car(less than 110g emission) and usethe 100% capital allowance, the car cost 11k, i save 40% of the 11k which iwould normally pay in tax?


Can i also submit fuel receipts and bills for tyres,servicing against my anual profits?

If i choose to go the milage route – 45p per mile for first10,000 then 20p there after, i take it i can not submit any further bills formy vehicle usage?

The car will be a smart car which i will use soley forbusiness use, i do not have another car in my name but my partner does, this isalso a smart car although not for business use, will the taxman be happy withthis?

I live in a 3 bed terrace cottage, i use one room as aoffice, how much can i allow for this on my tax return? Can i claim for the phone and broadband also?As this is used mainly for work.

My mobile phone is not in my name as i was prev bankrupt,its in my partners name, can i submit the bill for that to my tax return?

Thank you :-)

LurkerTurnedPoster

This is a silly question, but can you have a pay as you go phone if you have been bankrupt? And can you claim that in expenses?

PH1LL

LurkerTurnedPoster wrote: »

This is a silly question, but can you have a pay as you go phone if you have been bankrupt? And can you claim that in expenses?

LOL get your own thread!!

Not a silly question.

Yes you can have a pay as you go phone whilst being BR. You can off set the cost of the phone against you anual profit no probs.

If your discharged and can get a phone company to give you one, you can have a contract, its not that hard to get one not long after discharge.

PH1LL

Bump!

Also with another question! This is a minefield!!

If i claim the 45p per mile rate for my busniess miles, say i do 10,000 miles, so .45p x 10,000 =£4500 claim.

Does that £4500 go down as an expense off my income? eg tot taxable income =£52k - £4500 milage allowance, so taxable amount is now £47500??

Is that right??

OR do i save 40% tax on the £4500 milage claim alowance?

LurkerTurnedPoster

Lol Phill, I wasn't asking for me, I was asking for you.

dktreesea

PH1LL wrote: »

Bump!

Also with another question! This is a minefield!!

If i claim the 45p per mile rate for my busniess miles, say i do 10,000 miles, so .45p x 10,000 =£4500 claim.

Does that £4500 go down as an expense off my income? eg tot taxable income =£52k - £4500 milage allowance, so taxable amount is now £47500??

Is that right??

OR do i save 40% tax on the £4500 milage claim alowance?

Both the case if you are in the 40% income tax bracket.

So you declare your gross income as £52k, your mileage claim as an expense of £4,500, leaving you with a net income of £47,500.

For the amount of your home you use for work, it has to be sole usage, and you just work out the floor area as a percentage of the total floor area, then claim that percentage of your rent, or mortgage interest. Rent for sure. For mortgage interest you might want to check HMRC guidelines.

You can also claim a portion of your electricity costs. I think there might be guidelines on the HMRC about how to calculate that too.

Interest on business loans, business overdrafts, a commercial credit card is an allowable expense.

If you didn't expense it up front, you can claim depreciation (capital allowances) on your office equipment like a computer, office chair etc.

PH1LL

LurkerTurnedPoster wrote: »

Lol Phill, I wasn't asking for me, I was asking for you.

I don't know if this has anything of use.

Peter Clare gives 3 tips for employees and 3 for self-employed.
http://www.youtube.com/watch?v=rtXTm...hannel&list=UL

Hi thanks for the link but it doesnt work!

i misunder stood what you emant in the other post, but yes a BR can have a pay as hyou go phone if undischarged.

I am fully discharged so there are no condtioins on what i can do, the only limiting thing that i have is the fact that i have bad credit rating now, nothing else.

PH1LL

dktreesea wrote: »

Both the case if you are in the 40% income tax bracket.

So you declare your gross income as £52k, your mileage claim as an expense of £4,500, leaving you with a net income of £47,500.

For the amount of your home you use for work, it has to be sole usage, and you just work out the floor area as a percentage of the total floor area, then claim that percentage of your rent, or mortgage interest. Rent for sure. For mortgage interest you might want to check HMRC guidelines.

You can also claim a portion of your electricity costs. I think there might be guidelines on the HMRC about how to calculate that too.

Interest on business loans, business overdrafts, a commercial credit card is an allowable expense.

If you didn't expense it up front, you can claim depreciation (capital allowances) on your office equipment like a computer, office chair etc.

Thank you for your reply.

Looking at the benefits availavble with the milage allowance and the fact that i will be doing 15k per yr and will be driving a vehicle that does thousands to the gallon i think im leaning ltowards the mlg allowance rather than the capital allowance. i think if i were only doing a few thousand per yr then id gor for the capital.

Ill look in to the office space tax releif, although im sure that i read somewhere that if you claim any mor ethan £4 per week for office space in your haouse you have to go through all the process of prooving evry detail?

LurkerTurnedPoster

PH1LL wrote: »

I am fully discharged so there are no condtioins on what i can do, the only limiting thing that i have is the fact that i have bad credit rating now, nothing else.

Congratulations on getting discharged Phill. I hope your credit rating recovers as you continue to work hard.