Paying tax on additional income

bankhater_1965

mildred1978 wrote: »

That depends on how many rooms ( excluding bathrooms) there are in the house and 1 of them being an office and nothing else.

To claim 15% you'd need a dedicated office and 5 other rooms.

i had alot of wine last night , whoops

antrobus

mildred1978 wrote: »

You can only claim a laptop if you buy it solely for the purpose of working and nothing else.

No, OP will be self-employed. They can (hypothetically) buy a laptop, decide that it's used for business purposes half the time, and claim back 50% of the cost as a capital allowance.

mildred1978 wrote: »

You can claim £5 flat rate subsistence for any overnight stays (it's to cover phone calls etc).

If you're an employee your employer can pay you £5 tax free per per night for each overnight stay in respect of incidentals. I'm not sure the same thing applies if you're self-employed and paying yourself. You could give it a whirl, but it might be challenged by HMRC.

mildred1978

antrobus wrote: »

No, OP will be self-employed. They can (hypothetically) buy a laptop, decide that it's used for business purposes half the time, and claim back 50% of the cost as a capital allowance.



If you're an employee your employer can pay you £5 tax free per per night for each overnight stay in respect of incidentals. I'm not sure the same thing applies if you're self-employed and paying yourself. You could give it a whirl, but it might be challenged by HMRC.

Okay, I wasn't clear enough. You can't claim the entire cost of a laptop unless it's used entirely for business.

Got my company director head on (and we do claim the £5 but we are employees).

antrobus

horsechestnut wrote: »

...You can claim £3 per week for home office costs, as you most likely do your paper work in a room that you would use anyway. ....

I believe it has recently been increased to £4 per week, and it actually relates to the amount an employer can pay an employee without applying PAYE.

The proper way to calculate 'business use of home' if you're self-employed is to do the whole percentage thing based on actual bills and occupancy. Having said that, if you can't be bothered, or think that's not going to produce a number much bigger than £4 per week, just claim the £4. HMRC will almost certainly not challenge or even query a business use of home claim for £200.

bankhater_1965

i always replace laptop, printer , camera , mobile phone etc every year for this reason
it helps me and helps the economy

mildred1978

bankhater_1965 wrote: »

i always replace laptop, printer , camera , mobile phone etc every year for this reason
it helps me and helps the economy

If not the planet.

There's bo need to replace a laptop every year in any industry!!

bankhater_1965

mildred1978 wrote: »

If not the planet.

There's bo need to replace a laptop every year in any industry!!

im entitled to for my business eery tax year and i can do so to offset profits , i am under the vat threshold so i cannot claim this back (the 20% vat) which helps the taxman, and it helps the growth economy also helps me financaily , a sensible way forward i reckon
i replace alot of things sometimes more than once annualy with running a grounds maintanance business , a laptop is no differant

mildred1978

bankhater_1965 wrote: »

im entitled to for my business eery tax year and i can do so to offset profits , i am under the vat threshold so i cannot claim this back (the 20% vat) which helps the taxman, and it helps the growth economy also helps me financaily , a sensible way forward i reckon
i replace alot of things sometimes more than once annualy with running a grounds maintanance business , a laptop is no differant

My OH is an IT consultant. He gets through laptops but never 1 a year!!

Plus, you may be saving the corporation tax of 10%x but it's still costing you 90% of the cost as a hit to your profits!

Unless you're digging the ground with a laptop, I can't see why on earth you would get a new one every year. It makes no sense.

bankhater_1965

mildred1978 wrote: »

My OH is an IT consultant. He gets through laptops but never 1 a year!!

Plus, you may be saving the corporation tax of 10%x but it's still costing you 90% of the cost as a hit to your profits!

Unless you're digging the ground with a laptop, I can't see why on earth you would get a new one every year. It makes no sense.

i sell the old one ! keeping the wheels turning , same as a leased car for business, most change every year but thats not a asset !
ps have you ever tryed digging the ground with a laptop , thats just being silly haha

mildred1978

bankhater_1965 wrote: »

i sell the old one ! keeping the wheels turning , same as a leased car for business, most change every year but thats not a asset !
ps have you ever tryed digging the ground with a laptop , thats just being silly haha

You sell it for what, half the retail price? You're still losing more than you're saving!

I'm amazed the taxman hasn't queried that.