Self-employed taxes and expenses in first year?

sanjj_2

lovinituk wrote: »

You can't draw dividends and you have to pay NI if there is no company.

so it means there is no legal way to pay less tax if i am selfemployed:(

Jew

sanjj wrote: »

so it means there is no legal way to pay less tax if i am selfemployed:(

look above

Firefox1975

Jew wrote: »

, I think that'd qualify. .

This is your problem

As other posters have said, go and see an accountant

Jew

Firefox1975 wrote: »

This is your problem

As other posters have said, go and see an accountant

Bolded part sounds confrontational to me.

I am putting it up on the forum for everyone's benefit. I realize I can go elsewhere, in fact, I stated this several times.

Also, the fact that you don't think it'd qualify, is also your opinion. The HMRC website leaves both options open. Take a look yourself.

Pennywise2012

I don't think people are using 'see an accountant' as a euphemism for f off (although it might come across like that ) - it's more that an accountant's job really is to minimise the amount of tax you pay whilst keeping you on the right side of Her Maj. You're paying them and they're totally on your side. I worked in a business that used a lot of self-employed contractors, and they all swear by having an accountant and say they more than pay for themselves in tax saved.

It sounds like most of your working day will be spent at home, with sometimes leaving the house to go and physically meet clients?

If you're more bothered about how much you'll make than where you'll live, you'll have to work out if it's worth it financially to live in central London rather than further out and commuting in for meetings as and when they happen. I suspect that would be the cheaper option. Don't forget you're only actually saving 20% of any tax-deductibles.

If you want to live in London anyway, either because of everything that's there or because you really hate commuting, then you might have to accept that your bottom line will take a hit. HTH and good luck!

Firefox1975

Jew wrote: »

Bolded part sounds confrontational to me.

I am putting it up on the forum for everyone's benefit. I realize I can go elsewhere, in fact, I stated this several times.

Also, the fact that you don't think it'd qualify, is also your opinion. The HMRC website leaves both options open. Take a look yourself.

it isn't confrontational, it's what you need to do, yet once again, you are persisting in wanting to "discuss" Tax advice with people who may/may not be qualified to dispense the advice.

Let me put it another way regarding your "flat" that you would use for "work" in London. Do you honestly believe your are the first person that thought of this scenario in an effort to reduce Tax due? Especially in the Capital city?

This has no wings and will not fly.

And if you are still reading this why haven't you rung an accountant yet?

Slinky

Notmyrealname wrote: »

Walking is 2p per mile, .

Could you please point me in the direction of where you got this rate from, I'm having difficulty tracking it down on the HMRC website. I do a lot of walking as part of my job and wasn't aware I could claim mileage rates on it!

jobbingmusician

Slinky wrote: »

Could you please point me in the direction of where you got this rate from, I'm having difficulty tracking it down on the HMRC website. I do a lot of walking as part of my job and wasn't aware I could claim mileage rates on it!

You can't, it seems. http://www.sustrans.org.uk/assets/files/AT/Active%20Travel%20Cymru%20Toolkit/ideas_leaflet_ENG.pdf
includes the following. ' [FONT=&quot]The current stance on this from HM Revenue and[/FONT]
[FONT=&quot]Customs is that a walking allowance would not be subject to[/FONT]
[FONT=&quot]the same tax-free benefits as bicycle, car or motorbike[/FONT]
[FONT=&quot]allowances. Why not help to influence Government policy by[/FONT]
[FONT=&quot]being one of the first organisations to introduce this?'[/FONT]

MoneySavingUser

You have been offered a lot of good advice on the forum - however the problem is that there is a difference between what you believe is allowable for tax purposes and what actually is.

You need to grasp the distinction - claiming things which you think are allowed but aren't actually allowed will get you into trouble and lead to fines/penalties etc. and having to make up for the fact that you have underpaid tax.

Additionally, you need a proper business plan and cost everything to make sure it is actually viable - not just assume that you'll claim everything as an expense and save lots of tax.

There are lots of ways of reducing tax I would recommend

1. Getting a book such as this: https://www.amazon.co.uk/Tax-Handbook-2012-Tony-Levene/dp/1844901327/ref=sr_1_1?ie=UTF8&qid=1348568205&sr=8-1

2. Reading the websites that have been linked in this topic such as business link as well as the hmrc website

3. Some accountants offer free initial consultations - go and meet some of them

4. Starting a business requires a lot of research - and whilst asking here is helpful you need to do more

Slinky

jobbingmusician wrote: »

You can't, it seems. http://www.sustrans.org.uk/assets/files/AT/Active%20Travel%20Cymru%20Toolkit/ideas_leaflet_ENG.pdf
includes the following. ' [FONT=&quot]The current stance on this from HM Revenue and[/FONT]
[FONT=&quot]Customs is that a walking allowance would not be subject to[/FONT]
[FONT=&quot]the same tax-free benefits as bicycle, car or motorbike[/FONT]
[FONT=&quot]allowances. Why not help to influence Government policy by[/FONT]
[FONT=&quot]being one of the first organisations to introduce this?'[/FONT]

Darn it!....