1st Tax Return for Self Employed - help please!!!

EagerLearner

I am also working out my 1st tax return - I work from home 2 days a week and use broadband/mobile/home phone alot as a personal assistant I need to research for clients and much more on e-mails etc. I have collated all my expenses for the business as well as home ones that relate to the business.

As a Personal Assistant/Secretary I have been told I can claim for:

- Broadband / telephone / mobile costs (a percentage of this usage)
- Water and council tax / elec / gas (a percentage of this usage)
- Travel to clients
- Computer peripherals and repairs
- Postage to clients

I am not sure if there are any other categories anyone can think of that I am forgetting?

Am I right in thinking that I need to photocopy all the receipts or are those irrelevant and what matters most is the online return? Do I need to give them the total cost spent on mobile phone for example, or just the percentage for work usage? Many thanks...

ioscorpio

I also have just received my first tax return since going self employed in November. I only have one source of income working for an insurance co, paid commision on a per job basis, could that be a problem?

I am about to get a new car and am looking at leasing rather than buying, is that more tax efficient or does it not matter?

caverncity

I was informed by the IR that you cant claim for broadband as it could be classed as personal use even though my business is only run on the net.

Also while i am here i have a couple of questions.
1. If my office does not have or use water do I still claim a percentage off my water rates.
2. Does anyone know or can point me in the right direction for working out how much to claim for a room I use as an office.


thanks

Cute_'n'_Quirky

deb wrote: »

Hi,

I am employed part time and last August I also became a consultant for Virgin Vie cosmetics, selling make up, skin care, jewellery etc. I am registered as self employed and now have to do my first tax return. I have good records of what I have ordered each month, the retail value and the discount given (as we get commission for sales).

I really need some advice on what expenses I can claim for and how I do this (e.g. mobile phone, broadband, laptop etc, mileage, use of home for business etc). I rang a local tax advisor but their charge is £200 + VAT which would be a really big chunk of my earnings (about 2k) as I am really in this for the fun. Any advice **really** appreciated.

Thanks, debxxx

Phone your local tax office and make an appointment to see someone, even the tax inspector about your new self-employed status. You will get an appointment and the advice totally free of charge.

I have been self-employed for 23 years and did this regularly. I have never paid an accountant!

Cute_'n'_Quirky

Townley&Co wrote: »

The 30th September is the deadline if you want them to work out the tax for you.

Any later, you have to do it yourself, or get an Accountant.

[EDIT] The tax return is for 6th April 2006 to 5th April 2007 ONLY

Cheers

As an accountant you should know that this is not true!

I completed my year end April 06 return and posted it in the middle of January - the tax office worked it all out for me and sent the assessment.

What the Inland Revenue say is that if you post it up to the end of January and you owe tax, you may not get the assessment back in time to make the first payment which is due by the 31st January, in which case you would need to make a payment in order to keep your tax affairs in order.

Cute_'n'_Quirky

caverncity wrote: »

I was informed by the IR that you cant claim for broadband as it could be classed as personal use even though my business is only run on the net.

Also while i am here i have a couple of questions.
1. If my office does not have or use water do I still claim a percentage off my water rates.
2. Does anyone know or can point me in the right direction for working out how much to claim for a room I use as an office.


thanks

I claim for my broadband!

caverncity

Cute_n_Quirky wrote: »

I claim for my broadband!

this is what i found strange, they tell you to ring them to get advice and when you do they give out the wrong advice. I even told them all my business is done online but they still said no. Looks like i may have spoken to the wrong person that day.

Cute_'n'_Quirky

caverncity wrote: »

this is what i found strange, they tell you to ring them to get advice and when you do they give out the wrong advice. I even told them all my business is done online but they still said no. Looks like i may have spoken to the wrong person that day.

Make an appointment and go and see someone in person. I see my tax inspector - they are only human! They are also very helpful and FREE !

olly300

caverncity wrote: »

this is what i found strange, they tell you to ring them to get advice and when you do they give out the wrong advice. I even told them all my business is done online but they still said no. Looks like i may have spoken to the wrong person that day.

You need to use business broadband, which is more expensive.

Most home broadband packages have it stated in T&C that you can't use the set up for proper business use or words to that affect.

caverncity

olly300 wrote: »

You need to use business broadband, which is more expensive.

Most home broadband packages have it stated in T&C that you can't use the set up for proper business use or words to that affect.

That does sound more feasible. I did ring them again today and they said I could but they didnt mention business BB but they wouldnt would they. I also asked as I use a room as an office could I claim for the room and they said no, I can only claim for utilties that have gone up except water unless its used as part of my job.